Not all buyers are following the small-home trend. In fact, the desire to go big is growing again. The share of new homes built with 5,000 square feet or more is on the uptick, according to Census Bureau Survey of Construction data.
In 2015, the share of homes 5,000 square feet or larger reached a post-recession peak of 3.9 percent of the new-home supply. About 28,000 homes that size were started last year. For comparison, in 2012, the number of new homes started at 5,000-plus square feet was about half that at 15,000 units.
“The extent to which the 5,000-plus square foot home have recovered, roughly to where they were in 2008, shows a growing trend at the top of the market at least through 2015,” the National Association of Home Builders notes on its Eye on Housing blog.
What all do these big homes have inside? Seventy-nine percent of the 5,000-plus square foot homes have a finished basement; 68 percent have a three or more car garage; at least 60 percent have a patio or porch; more than 50 percent have five bedrooms or more; and 70 percent have four bathrooms or more, NAHB’s analysis shows.
Still, to keep in perspective, the McMansion is still fairly uncommon at 3.9 percent. Builders point out that while they’ve seen a growth in the demand for bigger homes, they are still also zoomed in on smaller homes and catering to the growing demand brewing in the entry-level market.
Source: “A Rising Market Share of 5,000-Plus Square Foot Homes,” REALTOR®mag (Oct. 6, 2016)