The sluggish housing market over the last several years did not have an impact on Americansâ€™ desire for bigger and fancier homes, according to a recent report from USA Today.
Evidently, demand continues to grow for these large estates, especially as the housing market across the nation improves.
This is a fascinating trend on the national housing market and one that is sure to impact both home buyers and sellers.
Americans Love to Own Large, Luxury Homes
The American Dream of owning a bigger and better home is still very much alive across the country.
In fact, as the recent USA Today article noted, many of todayâ€™s buyers still want a house that includes as many luxury amenities and features as they can think of â€“ or at least afford.
This may include gourmet kitchens, deluxe bathrooms, spacious decks or screened-in porches.
While this is occurring, experts also note that homeownership rates have remained mostly stagnant. And income growth appears to be lagging behind the rising price of homes.
Meanwhile, the size of families and households continues to shrink, even though the houses themselves are getting bigger.
Experts say that this is because Americans still love the idea of owning a home that makes a statement about them, that demonstrates their status in society.
A Closer Look at This Housing Market Trend
Here is some relevant data on this housing market trend, based on US Census data:
- The average square footage of newly built single-family homes in the U.S. jumped by nearly 57 percent, from 1,660 in 1973 to 2,598 square feet in 2013.
- The Northeastern region of the country had the second-highest average square footage, which rose by 65 percent. Specifically, the square footage jumped from 1,959 to 2,636.
- Meanwhile, the average number of people per household in the U.S. dropped from 3.01 in 1973 to 2.54 in 2013.
- Specifically, families fell to 3.12 members from 3.48 during the same period of time.
- As a result of the construction of larger homes, the average sales price of newly built single-family homes in the U.S. skyrocketed by 419 percent from $62,500 in 1978 to $324,500 in 2013.
- Even if you consider inflation, that still quite a jump, experts say.
- The Northeast is home to the highest average sales price, which increased by 646 percent from $63,000 in 1978 to $469,000 in 2013.
- Between 2012 and 2013 alone, the average sales price of newly built single-family homes in the U.S. jumped by 20 percent: from $292,000 to $324,500.
- Meanwhile, the U.S. homeownership rate continued to drop during the fourth quarter of 2013: from 65.4 during the fourth quarter of 2012 to 65.2 percent.
So What Do Home Owners Get With These Newly Built Homes?
A better question is: What donâ€™t they get?
Hereâ€™s a breakdown of these new construction homes and what they offer to buyers:
- Of the 569,000 homes built last year throughout the U.S., 188,000 (33 percent) contained three or more bathrooms.
- Meanwhile, 251,000 (44 percent) of last yearâ€™s houses featured four or more bedrooms, which is the largest share since 1973..
- Also, of the homes built last year, 301,000 (53 percent) came with a patio.
- And 361,000 (63 percent) featured a porch.
- Meanwhile 127,000 (22 percent) included a deck.
- Another trend that experts are seeing is more finished basements for added space, according to the report.
- These homes have mostly hovered around one and two stories, however, despite the increase in size. In fact, 233,000 (41 percent) of newly built homes last year were one story and 305,000 (54 percent) were two stories. Meanwhile, only 31,000 (5 percent) were three stories or more.
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Weâ€™ve made it our goal to help you stay informed as you navigate the market. After all, the better informed you are, the better prepared you are for securing a successful outcome on the housing market.