Single-Family Home Sizes Have Been Trending Larger This Year

Recent data show that the size of single-family homes is increasing, in part because of homeowners’ desire for more space in response to the virus crisis and the opportunity (or necessity) for working from home.

According to third quarter 2021 data from the Census Quarterly Starts and Completions by Purpose and Design and NAHB analysis, median single-family square floor area increased to 2,337 square feet from 2,299 square feet in the second quarter and 2,284 in the first. Average (mean) square footage for new single-family homes increased to 2,541 square feet in Q3 from 2,540 square feet in the previous quarter and 2,516 square feet in the first. 

“Going forward we expect home size to increase again, given a shift in consumer preferences for more space due to the increased use and roles of homes (for work, for study) in the post-Covid-19 environment,” NAHB Chief Economist Robert Dietz said in prepared remarks. 

Residents’ Greatest Desire: More Storage

BTR developers are generally following this trend, but much depends on their target renter base.  NexMetro, for example, surveys its residents in its Avilla Homes to ensure that it offers floor plans that best complement their lifestyles.

“Our consumer base is diverse, with one-third professional millennials, one-third life transition (i.e. recent divorce); and one-third baby boomers,” Jacque Petroulakis, Executive Vice President, Marketing & Investor Relations, NexMetro Communities, tells GlobeSt.

“While these residents represent a diverse demographic, we have seen commonality in their preferences. The most significant of which is their desire for more storage.”

NexMetro will be launching a redesign of its one-, two- and three-bedroom homes in 2022. The actual footprint of the homes increased very slightly. 

“What did change is our ability to add more storage areas within the homes,” Petroulakis said. “Our residents value a well-laid out open floor plan, the high ceilings, big windows, etc.”

“For example, in our redesign, the one-bed increased in size by 8%— 635 to 690 square feet—while the two- and three-bedroom increased in size by 3%. On the surface, that one-bedroom size sounds small, but it lives very big with its 10-foot ceilings, open floor plan and great use of natural light helps with that.”

On the other hand, there is Eddy O’Brien, Blaze Capital Partners’ co-founder and managing partner. “We like to generally skew square footage below what the for-sale market is averaging, and usually target between 1,400 to 1,800 square feet on average across the community,” he tells GlobeSt. “This general average will range depending on floor plan offerings and community specific factors.”

“Given the death of entry-level starter homes delivered over much of the last decade combined with an increasing desire for household flexibility, we continue to believe that build for rent products fill a need in the market.”