New homes in the US are getting larger. Here’s why.

Since the Great Recession, more new homes have been selling at what Houzz calls the extra-large size: 4,000 square feet or bigger. Given that many Americans suffered financially during the recession, that might be surprising. Wouldn’t it make more sense for home sizes to go down during an economic downturn, not up? Here’s why new homes have been trending in the opposite direction of what you might expect. First, let’s go over some numbers. Fewer new houses are selling these days than before the recession, which began with the economic and housing crash of late 2007 and lasted until mid-2009. In 2005, a year before the peak of the housing bubble, new homes were practically flying off the market at a rate of 1.283 million per year. Last year, they sold at less than half that rate. In other words, new homes are selling at a much lower volume than a decade ago.


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