The average new home has grown 24 percent larger over the past 15 years, while lots have shrunk 10 percent, according to a new study from Zillow.

The trend of building bigger houses on smaller space began before the recession, plateaued and has been increasing again over the last few years, Zillow reported.

In the early 2000s, an average newly constructed home had three feet of yard space for every one foot of indoor space. By late 2014, the study shows homes had just under two feet of yard space for every one foot of indoor space. The median lot size has showed a decline, down about 10 percent from the late 1990s, while new homes have grown nearly 25 percent since then.

More bedrooms and bathrooms are being built in new homes than were built in 2000, with 0.1 more bedrooms and 0.3 more bathrooms. Additionally, new single-family homes are typically selling about three months prior to construction completion.

Geographically, the greatest concentration of changes for larger homes on smaller lots has taken place throughout the entire East Coast, with the exception of Maine, which remains mostly unchanged, according to the Zillow analysis of U.S. Census Bureau, Survey of Construction microdata, 2000-2014.

“The idea that Americans increasingly prefer smaller homes is simply not supported by the most recent construction data. We still want our big homes with ample bedrooms and bathrooms, but increasingly, we’re having to make a tradeoff to keep those kinds of homes accessible – namely, smaller lots,” Zillow Chief Economist Svenja Gudell said in a statement. “Americans want both space and convenience, but the land available relatively close to job centers is expensive. This trend of larger homes and smaller lots represents the compromise between what builders can profitably build and what consumers will actually buy.”

Study: Homes Are Growing Larger, While Lot Size Continues To Shrink

by Banker & Tradesman time to read: 1 min
0