New Construction Homes Getting Smaller?

The median size of new construction homes is decreasing, according to recent according to the Commerce Department. The size of new homes has steadily increased during this past decade, and the recent shift has prompted experts to speculate a rise in affordability and a return of first-time home buyers.

New construction homes have slowly climbed to a median size of 2,472 square feet in the second quarter of this year. Recently published third quarter data is reporting a nearly unprecedented decrease, with a median size of 2414 square feet — down 2.3%.

The Commerce Department also reported a 4.2% year-over-year increase in new construction starts for single-family homes. This growth can be largely attributed to entry-level buyers, who are attracted by the increasing affordability of new homes.