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Median size of new homes on the rise

Posted by The Aramco Group on Fri, Jun 10, 2016 @ 14:06 PM

The Census Bureau released its annual report on "Characteristics of New Housing" which provided information on the attributes of newly built homes in the United States. The report revealed that the median size of a new homes have reached a new high of 2,467 square feet – this is an increase of 1,000 square feet over the past 42 years.

2016 homes are 62 percent larger than homes were in 1963, despite the fact that household sizes have been shrinking steadily since then.

Larger living spaces, however, have not come with larger construction costs necessarily. When adjusted for inflation, construction on a per square foot basis has remained relatively stable – ranging between $107 to $128 since 1973.

Living standards continue to improve as advances are making homes more energy efficient and safer.

Meanwhile, interest rates remain near historic lows. Conforming no-point 30-year fixed mortgage rates average 3.625 percent while the 15-year rate is near 2.875 percent.

Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.Biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.