Home Sizes May Be Indicator for Economy’s Health
The size of newly constructed homes may be a sign of how well the economy is doing, according to a new analysis by Robert Dietz, chief economist for the National Association of Home Builders.
“Typical new-home size falls prior to and during a recession as 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,” he notes.
So, how are home sizes doing now? The median new-home size increased at the beginning of this year, but overall sizes have been falling since mid-2015.