New home sizes haven't stopped increasing since the 1950s. Every year, the average square foot of a new home just keeps getting bigger, reaching 2,800 last year.
A new survey shows the increasing home size matches the decline in the number of three-bedroom homes being built. Three-bedroom homes have consistently been the most commonly built type of new single-family homes. In 2009, the share of new homes with three-bedrooms was 54%, but in 2015 it was 43%.
The increase in the share of new homes with 4 or more bedrooms in 2015 may reflect the move by builders to focus on higher end, larger homes in the post-recession period.
However, recent data indicate that this trend started to reverse with new 2016 data showing that the median square feet of new homes declined. Growth in the number of smaller homes, such as town homes, may emerge going forward in response to first-time buyers returning to the market.