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Home | Daily Dose | New Homes Grow Larger – But Who’s Buying Them?
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New Homes Grow Larger – But Who’s Buying Them?

New Homes

According to a report issued by the National Association of Home Builders (NAHB), the average size of new homes are increasing, and the population of buyers may be the main reason for the average home's expanding size.

Data culled from the Census Bureau and presented at NAHB's International Builder's Show in Las Vegas showed some interesting trends in new home production.

"The average home size has continued to rise for the past four years, from 2,362 square feet in 2009 to 2,679 square feet in 2013," said Rose Quint, NAHB AVP for survey research.

Homes with four bedrooms have increased from 34 percent in 2009 to 48 percent last year. 60 percent of new homes are two-story, and the percentage of new homes with three-plus garages has climbed to 22 percent last year.

What's spurring the increased size of new home production in the United States? More qualified buyers who have higher credit scores and more income are pushing homes out and up.

"It requires a high credit score and a nice income to qualify for a mortgage," said Quint, who noted that the spread between the average Experian credit score of all U.S. consumers and the average home borrower's score has risen from 33 points in the early 2000's to 58 points in 2013.

More qualified buyers typically bring a higher median income, and rising sales prices and lackluster new home production nudge buyers toward larger homes.

The average sales price of new homes has risen from $248,000 in 2009 to $318,000 in 2013.

The median income of new-home buyers has steadily climbed from $91,768 in 2005 to $107,607 in 2011, and the number of new-home sales has dramatically declined from 1.28 million to 306,000 during the same period.

"There are not as many people who have the income that can qualify for a new home," Quint said.

About Author: Colin Robins

Avatar of Colin Robins
Colin Robins is the online editor for DSNews.com. He holds a Bachelor of Arts from Texas A&M University and a Master of Arts from the University of Texas, Dallas. Additionally, he contributes to the MReport, DS News' sister site.

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