Friday, March 06, 2009

Avg. Size New Home Falls for First Time Since '94

According to annual Census Bureau data from 1978 to 2007, and quarterly data through 2008:Q3 (source here), the average size of a new home fell in 2008, the first annual decrease in new home size since 1994 (see chart above). Over the last 15 years, the average new home size increased by 21% from 2,050 square feet in 1994 to a peak of 2,479 square feet in 2007, before falling to 2,438 square feet in the third quarter of 2008. The 2008 decrease in home size was the largest annual decrease since 1980.

7 Comments:

At 3/06/2009 2:46 PM, Blogger Milton Recht said...

Since new house sizes vary by region, with the sharpest drop in new homes in areas with larger homes such as California, it would be interesting to see regional averages or a constant weight region average. Probably no difference over time in average new house size by region.

 
At 3/06/2009 4:17 PM, Blogger OBloodyHell said...

How will people survive in such cramped quarters?

If this trend continues, we'll wind up with 3 families sharing a 400 sq foot studio!!

Obama needs to do something about this travesty!!

:-9

 
At 3/06/2009 4:37 PM, Blogger 1 said...

"Obama needs to do something about this travesty!!"...

Yes he can do something about this travesty!

Obama just needs to invite a better class of people for his Wednesday @ the White House cocktail bash...

 
At 3/06/2009 5:53 PM, Anonymous Anonymous said...

New U.Va. Study Sheds Light on Foreclosures in States and Metropolitan Areas

February 25, 2009 — National housing price declines and foreclosures have not been as severe as some analyses have indicated, and they are not as important as financial manipulations in bringing on the global recession, according to a new analysis of foreclosures in 50 states, 35 metropolitan areas and 236 counties by University of Virginia professor William Lucy and graduate student Jeff Herlitz.

Their analysis shows that most foreclosures have been concentrated in California, Florida, Nevada, Arizona and a modest number of metropolitan counties in other states. In fact, they claim that "66 percent of potential housing value losses in 2008 and subsequent years may be in California, with another 21 percent in Florida, Nevada and Arizona, for a total of 87 percent of national declines."

"California had only 10 percent of the nation's housing units, but it had 34 percent of foreclosures in 2008," Lucy and Herlitz reported.

Link

 
At 3/06/2009 6:45 PM, Blogger Rick Ballard said...

Milton,

That type of data can be found here but it is presented in July for the previous year. The South actually edges out the West in terms of Sq Ft.

 
At 3/06/2009 6:55 PM, Blogger BDHumbert said...

Wonder what the correlation is with home ownership percentage - one hypothesis is that loose credit policies not only allowed more people to buy homes, but also encouraged people to buy more home than they really needed - could be an interesting paper Dr. Perry - what do you think?

Bruce

 
At 3/06/2009 7:25 PM, Blogger Thomas Shawn said...

Professor Perry, can you do some statistical adjustment to the increasing obesity of Americans?

Maybe they're actually living in smaller homes due to the size of their behinds?

 

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