Small Home Buying on the Rise

A new report from the National Association of Home Builders (NAHB) reveals that the new average size of a home dropped in 2009. According to the association, the average home was 2,520 square feet in 2008 and dropped to 2,480 last year.

The last time the average size of a completed home fell by a statistically significant amount was in 1982.

Are Homebuyers Getting Some “Cents and Sensibility”?

It seems that homebuyers are shifting out of the desire to purchase the biggest house on the block and instead are now thinking about the amount of money that goes into a home to help with their selection process. In fact, according to a survey from Better Homes and Gardens magazine, 36 percent of homeowners say that downsizing is a bigger priority and expect for their next home to be either “somewhat smaller” or “much smaller” than their current home.

The new outlook on spending for a home has been labeled the “cents and sensibility” approach because practicality and price have become top priorities.

Why Are Homebuyers Changing Their Preferences?

Housing analysts speaking at the International Builders’ Show last week said that while homeowners have been looking to purchase smaller homes for a few years, the recession undoubtedly forced them to take action. Most experts agree that the era of easy money is gone, which means homebuyers will now need to make better-informed choices when trying to purchase their homes. (Learn how to invest after a recession)

What Will Be In Standards Homes This Year

According to the NAHB, homeowners surveyed showed the greatest interest in specific features in homes and the association has said the builders will likely respond:

• Walk-in closets in the master bedroom
• Laundry rooms
• Insulated front doors
• Great rooms
• Energy-efficient windows
• Linen closets
• Programmable thermostats
• Energy-efficient appliances and lighting
• Separate shower and tub in master bathrooms
• Nine-foot ceilings on the first floor

In addition, the following items are not as likely to show up in new homes in 2010:

• Outdoor kitchens
• Outdoor fireplaces
• Sunrooms
• Butler’s pantries
• Media rooms
• Desks in kitchens
• Two-story foyers
• Eight foot ceilings on the first floor
• Multiple shower heads in the master bath
• Smaller kitchens

If you’re looking to buy a home, expect the “less is more” approach as you conduct your search for homes. With the recession hitting so many so hard, builders just don’t appear to be interested in creating a lot of homes that will sit just as empty as foreclosed homes already on the market.