More Smaller and Cheaper Houses Getting Built
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The market is adjusting:
Less money, less house: How market forces are reshaping the American home
Major homebuilders are prioritizing narrower houses with fewer doors, windows and cabinets. Median homes sizes are at a 13-year low.After years of prioritizing large homes, the nation’s biggest and most powerful home builders are finally building more smaller ones, driving a shift toward more affordable housing.
The boom in smaller construction has cut median new-home sizes by 4 percent in the past year, to 2,179 square feet, census data shows, the lowest reading since 2010. That’s helped bring down overall costs and contributed to a 6 percent dip in new-home prices in the same period.
Townhouses, in particular, are increasingly popular, accounting for 1 in 5 new homes under construction at the end of 2023, a record high, according to an analysis of census data by the National Association of Home Builders. To cut costs, companies are building smaller and taller, with fewer windows, cabinets and doors.
Altogether, this wave of new construction promises a crucial first step toward addressing a critical shortage of starter homes that has sidelined first-time home buyers and contributed to inflation. -
Now, you want affordable? Look into many of the Habitat house plans. Many are drawn up to minimize the size of the cut-off pile. Might have to make some minor adjustments, but you can build a very liveable 3/2 in 1600-ish sq ft.
Now, as to size lots...I've always liked the old neighborhoods in Savannah. Almost no front yard, small backyards and a nice park in the center of a square street.
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Going down the internet hole, a couple of interesting graphs.
I am not sure how true the below graph is. Generally, Japan houses are pretty small.
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We sold our 1200 sq. foot half of a duplex for over $400K, which would have been great except we had to buy another one. Housing in MA is freaking nuts, and only slightly less insane in RI.
How can anybody young afford a 400K starter home?
I was only joking
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For the vast majority, they can't.
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@Jolly said in More Smaller and Cheaper Houses Getting Built:
For the vast majority, they can't.
One of the things we like about our new place (which admittedly needs quite a bit of work before it's going to feel like a home rather than a project) was the basement apartment. There's a decent chance we're going to need it for at least one kid.
Incidentally, I'd kill for $125 / sq. ft.
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After the crash of 2008 might have been the last best opportunity to get a deal on a new home. When we sold two years ago, we sold to someone who brought 500k cash to the deal and borrowed the rest. Here in Houston we know a few young couples who we believe had substantial help from their parents to buy their homes.
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We sold our 1200 sq. foot half of a duplex for over $400K, which would have been great except we had to buy another one. Housing in MA is freaking nuts, and only slightly less insane in RI.
How can anybody young afford a 400K starter home?
@Doctor-Phibes said in More Smaller and Cheaper Houses Getting Built:
How can anybody young afford a 400K starter home?
It's
becomingis a real issue. Read threads on reddit for Gen Z... there is a lot of angst out there. Housing (similar to college) has gone WAY up in cost compared to the increase in income. Only way younger folks can buy is either to move to a more affordable area or wait for their boomer (et al) parents to sell their home and help with the down payment.With supply/demand in effect, aka housing shortage, and rates that'll likely decrease... it's really hard to see any market pressures that'll make house prices go back down. Cities should (and some are) convert vacant commercial buildings into modern apartment homes for purchase.
