Data from a recent survey conducted by the National Association of Home
Builders (NAHB) has revealed that home buyer preferences in relation to the size
of a home depends largely upon age, race, and ethnicity.
In the their survey, entitled “What Home Buyers Really Want,” the NAHB
polled over 3,600 home buyers nationally on a range of property
characteristics. The results indicated that the median home size desired by
American home buyers is 2,226 square feet; although, examining the data closer
shows that different types of buyers have notably different preferences in
ideal home size.
Age has historically played a significant role in a buyer’s preferences
in terms of home size, as the amount of space both desired and required tends
to decrease as the buyer gets older. For instance, the survey revealed that home
buyers younger than 35, typically first time home buyers,
preferred homes at an average of 2,494 square feet, while home buyers age 65 or
older preferred homes at an average of 2,065 square feet.
According to Rose Quint, assistant vice president for survey research
in the NAHB, the home building industry aims to make use of these findings by
surveying buyer home size preferences. With the results, the NAHB has a better
understanding of home size preferences for U.S. home buyers as a collective, as
well as each varying demographic preference.
In addition to age, the NAHB survey also found that home buyer
preferences differ along boundaries of race and ethnicity, with minority buyers
preferring a larger amount of space than White, non-Hispanic home buyers. While
the survey showed that the latter preferred a home of 2,197 square feet, Asian
home buyers were shown to prefer homes at 2,280 square feet, while Hispanic
buyers preferred homes at a median of 2,347 square feet. Likewise,
African-American buyers desired homes at a median of 2,664 square feet.
According to the U.S. Census Bureau, median home size peaked during 2006
but subsequently declined in 2007, 2008, and 2009. Since then, however, median
home sizes have increased for three consecutive years. Projections reveal that
the median home size of all single-family homes originated in 2012 amounted to
2,309 square feet, with the average being 2,521 square feet.
The chief reason for this turnaround in home size constructed can be
attributed to the decreased availability of credit for home buyers; as a result
of the strict underwriting requirements that have somewhat impeded the mortgage
market in recent years, riskier borrowers have been pushed out of the market.
Essentially, homes constructed within the past several years display the
preferences of home buyers who could meet these stringent standards and afford
to make more substantial down
payments. These borrowers tended to be somewhat wealthier and able to
afford purchasing homes with more square footage.
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