My Real Estate Blog

New home buyers responded to tough times in 2009 by opting for smaller houses, driving down the average size of a house built in the U.S. for the first time in 27 years.

Data recently released by the National Association of Home Builders (NAHB) found the average size of a new home that was completed in 2009 fell to 2,480 square feet from 2,520 square feet in 2008. The last time the average completed-home size fell by a statistically significant amount was 1982.

Homeowners surveyed by Better Homes and Garden magazine said downsizing was becoming a bigger priority. Also, not surprisingly a 'cents and sensibility' approach to buying and/or improving a home is a priority, with practicality and price at the top of the list.

The percentage of homes with 4 or more bedrooms has been falling since 2007. In 2009, the number of homes with 3 or more bathrooms fell for the first time since 1992.

Two other trends are contributing to the declining home sizes are the prominence of first-time home buyers in the housing market (more likely to compromise on home size in exchange for a lower price), and the 55-plus crowd, who tend to purchase single-story homes, generally smaller.

Items least likely to be added in 2010-

• Outdoor kitchens
• Outdoor fireplaces
• Sun rooms
• Butler's pantries
• Media rooms
• Desks in kitchen
• Two story foyers
• Eight foot ceilings on the first floor
• Multiple shower heads in the master bath

Builders are concentrating heavily on energy-saving features, with luxury items on the chopping block or on hold as builders try to hold down prices.