Since the Great Recession, more extra large homes, those of 4,000 square feet or more, are being built. Houzz staffer Erin Carlyle take a look at the numbers and reasons behind this new trend.
Carlyle points out that in 2005, 1.283 million homes were sold while last year home sold at less than half that rate. In 2005, only 7% of homes were 4,000 sq. ft or more, but 11% of the homes built in 2015 fell into this category. The types of homes being built have led to this increase but economic factors make it more advantageous for home builders to build homes this big:
Other factors in the construction industry have amplified this tendency. “Lot availability has declined,” says Nino Sitchinava, principal economist at Houzz. As lots become more scarce and expensive, and construction costs go up, builder profit margins get squeezed. It makes economic sense for developers to build larger homes, Sitchinava says.