During 2Q 2016, the size of new single-family homes declined from 2,658 to 2,616 square feet and the median size of single-family homes also fell from 2,465 to 2,392 square feet. In Eye on Housing, National Association of Home Builders Chief Economist Robert Dietz takes a look at data from the Census Quarterly Starts and Completions by Purpose and Design to illustrate this trend.
Dietz explains that the decline may have to do with the addition of more town houses to the mix as builders strive to provide more entry level product. He points out that on a moving annualized basis, however, both median and new single-family size homes still increased, which is consistent with post-recession trends:
The post-recession increase in single-family home size is consistent with the historical pattern coming out of recessions. Typical new-home size falls prior to and during a recession as some home buyers tighten budgets, and then sizes rise as high-end home buyers, who face fewer credit constraints, return to the housing market in relatively greater proportions.