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Market Share of 5,000+ Square-Foot Homes Increases

by Joe Ward

rsz_construction1

In 2014, the share of new homes with 5,000-plus square feet rose to a post-recession peak of 3.75 percent of new homes started, or 24,000 units, according to the Census Bureau’s Survey of Construction.

Back in 2006, the new construction boom was still in effect, and there were 45,000 new homes of 5,000 square feet or larger, or 3.04 percent of all starts. In 2007, that number dropped to 37,000, or 3.56 percent of the total of new construction, and in 2008, only 20,000 homes, or 3.24 percent. From 2009 to 2011, fewer than 13,000 such homes were started each year, or less than 3 percent of the total of new homes.

The Return of Large-Scale Construction?

There is an upward trend in the median and average sizes of new single-family homes. In 2012, the number of 5,000-plus square-foot homes rose to 15,000 units, but their share was only 2.78 percent. Since then, the number of large homes started has climbed 60 percent to 2014’s 24,000 (the highest since 2008), and the share of the new market was 3.75 percent, the highest share since 2004.

Here is a graph from the NAHB on the number of large new homes started:

Chart 5000 sq ft homes 1

And here is a graph on the market share for such homes:

Chart 5000 sq ft homes 2

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