Mega-homes? Builders Aren’t Building Quite As Many of Them
New homes are getting a bit smaller, according to the latest research from the National Association of Home Builders.
According to the association, the share of new homes that are 5,000 square feet or more has dropped to its lowest point since 2012. That, of course, was during the Great Recession, when the thought of paying for such a large home wasn’t attractive to many buyers.
According to the association’s research, the percentage of new homes 5,000 square feet or higher fell to 3.1 percent in 2016. That is down from 3.9 percent in 2015.
From a numbers standpoint, 24,000 new homes built last year were 5,000 square feet or more. In 2015, that number stood at 28,000.
What do 5,000-square-foot homes usually feature? According to the National Association of Home Builders, more than half of these extra-large homes have five or more bedrooms. The association said that 70 percent have four bathrooms or more, while 74 percent of homes with 5,000 square feet or more have finished basements.
The association also found that 65 percent of these jumbo-sized homes have a garage that can hold three or more cars, while 58 percent have a patio or porch.
The national economy is stronger today. So why are home builders erecting fewer mega-sized homes? The association’s researchers say that a growing number of builders are instead focusing on building entry-level new homes, a market that is growing across the country.
Association researchers predict, then, that the size of newly built homes will continue to drop as builders continue to focus on this entry-level segment.
Of course, if you are looking for a larger newly built home, you still have choices. Builders are erecting plenty of larger-size homes today. Sure, the supply of 5,000-square-foot-plus homes might be on the decline, but there are still plenty of new homes totaling 3,000 square feet or more of living space.