According to the National Association of Home Builders (NAHB), first-time homes are coming in smaller packages.
The Association recently released the NAHB Home Builder Preferences Survey indicating that smaller homes are selling well, primarily to first-time buyers, such as the latest cohort – the millennials. The home builders interviewed for the report suggest that many people now prefer to purchase small. And U.S. Census Bureau figures support that position: the average home built in 2016 was 2,634 sq. ft., down from 2,689 sq. ft. in 2015.
Says Rose Quint, NAHB’s assistant vice president of survey research: “2016 marked the end of an era that began in 2009, when homes got bigger and bigger with more amenities. I expect the size of homes to continue to decline as demand increases from first-time buyers.” Smaller homes are finding favor with other groups as well. Retirees who enjoy traveling find that smaller, lock-and-leave residences fit their on-the-go lifestyles, and economic realities mean that they now have to think small.
While both the downsizing and millennial buyers are comfortable with less space (and the resulting savings on utility bills), they still expect the luxurious finishes and modern amenities available in larger homes. Millennials, because that’s what’s trendy now, and retirees, because they don’t want to feel they’re settling for less.
As a result, home décor magazines and TV network programs are touting the benefits of small homes and showcasing elegant space-saving solutions designed for those who want to scale down their homes without changing their lifestyles. Because they won’t.