Median Square Footage on the Rise!

A montecito estate with 13,000 square feet.

This Montecito estate boasts approx. 12,000 square feet of luxurious living space.

 

CNNMoney is reporting an upswing in homebuyers’ preference for larger homes. As effects of The Great Recession continue to fade, Americans are purchasing larger homes once again. According to the Census Bureau, the median home size in 2012 was up 8% from 2009 at a record of 2,306 square feet. In 2013, home sizes appear to be growing even more, with Marcie DePlaza, a division president for GL Homes reporting that so far this year, her company is selling homes 7% larger than those in 2012. 

Access to credit may skew these statistics as mortgages for low- and mid-income home buyers are more difficult to get than for high-income buyers. With strict underwriting standards, homebuyers who receive loans tend to be a bit more affluent and can afford larger homes. Some predict that as mortgages become easier to obtain, median home sizes will drop, but current trend seems to be staying the course. People tend to prefer more space, and Jeffry Roos, regional president of homebuilder Lennar, credits affordability with the drop in home sizes during The Recession, “It wasn’t that consumers wanted less space, many just couldn’t afford more.” In fact, homebuyers tend to buy homes larger than originally planned, 18-20% larger in fact. “The four-bedroom outsells the three-bedroom all day long” said DePlaza.

These statistics are promising evidence that the economy is in a healthy state of recovery, “People weren’t buying SUV’s during the recession either and they are again,” DePlaza said.

Riskin Associates represents properties of distinction in Montecito, California and the surrounding communities of Hope Ranch and Carpinteria. The average square footage of Riskin Associates’ listings is 7,668 sqft.

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