Blog Posts

The Next Big Trend in Housing

Is the next big thing in housing really smaller houses? The median size of new single family houses sold in the US has increased 42% during the past 20 years. From 1650 square feet to 2335 square feet in 2007.
But a closer look at the data shows that this trend has not held steady throughout from year to year. Decreases occurred in 1981-1982, 1995, and 2007-2008, and I expect house sizes to decrease even further this year and next, while the economy remains sluggish. In addition, with the $8000.00 first time home buyer federal tax credit stimulus bringing more first time home buyers to the market, the trend toward smaller houses will probably continue. These changes are consistent and compatible with other emerging trends that appeal to new home buyers. Such as more walkable and diverse neighborhoods and green building practices. In fact, the smaller, smarter home can be considered a precursor to green building since, by definition, green homes require less material to build and less energy to heat and cool.
Another growing trend is people are staying in the homes they already own and fixing them up. New kitchens and bathrooms, adding on living space by finishing out the basement and adding a deck. This is good news to the St. Louis Handyman business. While other industries are struggling to stay afloat, we are haveing a bumper year. And it looks like this trend will likely continue. With people finding it difficult to sell their house in this depressed market, they are turning to remodeling and repair companies to fix up what they already have. The houses that are being built are becoming smaller and often have an open floor plan to offer more space while still staying small.
Will house sizes continue to decrease once the housing market stabilizes? Demographics make a strong argument for the affirmative, since the average household size is continuing to shrink.