Bigger isn’t always better! The National Association of Home Builders recently reported that the average square footage of new construction homes is actually shrinking, reversing a trend that we’ve been seeing for decades. Brand new homes are now about 3% smaller than this time last year.
Additionally, townhomes are making up a larger share of the market, at 13% of all new homes. Typically a bit smaller and more affordable than detached homes, townhomes are increasingly popular with Millennials transitioning from apartments, as well as Baby Boomers interested in downsizing.
Why are we seeing this shift? The “bigger is better” era may be coming to an end thanks to the increased affordability and availability of these smaller homes. Previously, the mindset had been that new construction homes were only for wealthier buyers on the higher-end of the market. Now, however, builders are looking to fill the need of the moderate buyers who are discouraged by the fiercely competitive market and low inventory of homes for sale. As a result, we’ve seen an abundance of new homes in Greater Philadelphia in the $250,000-400,000 range.
Interested in customizing and purchasing a new construction home? Give us a call at (215) 699-5555 to meet with an experienced buyer’s representative.