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.

Source:  https://www.marketwatch.com/story/size-matters-tracking-the-economy-through-new-home-square-footage-2019-05-24