VARbuzz: Home builders: New homes are larger, fancier
Looking at data from the Census Bureau, the National Association of Home Builders finds that the trend in 2011 was toward larger homes with more amenities.
- Average size: 6% from 2010 (from 2,381 to 2,522 sq. ft.)
- Four-bedroom homes: 42% of the construction (up from 36%)
- Finished basement: 30% of construction (up from 25%)
- Average sales price of a newly constructed home: $274,400 (up from $264,900)
NAHB asks the obvious question: How can the average home be getting bigger, more expensive, and have more amenities when the housing market remains weak and the overall economy is yet to see a robust recovery?
The answer is simple: it comes down to who has been buying homes. In the last couple of years, a typical home buyer had to have a 20% down payment, a high credit score, well-documented income, and stable employment history in order to qualify for a mortgage.