It seems that smaller Metro Atlanta homes may finally be making a comeback. Data released recently by the Commerce Department shows the median size of a single-family home built in the third quarter was 2,414 square feet, down 2.3% from the second quarter measure of 2,472.
New Metro Atlanta Homes Smaller
The third-quarter figure is the lowest since 2012's fourth quarter, and it is the second consecutive quarterly decline following a 0.2% drop in this year's second quarter.
Median new-home sizes had been on a general upward swing since 2012 as builders focused on building increasingly larger, more expensive Metro Atlanta homes to cater to the better-heeled buyers with the income and credit to buy homes. Entry-level buyers, meanwhile, remained largely sidelined by luke-warm wage growth, mounting student debt and stringent mortgage-qualification standards.
Nationwide, construction starts for single-family homes increased by 4.2% from a year earlier to a seasonally adjusted annual rate of 696,000. The most likely source for that greater volume of starts is entry-level buyers.
The third-quarter decline in median new-home size doesn't necessarily reflect changes in preferences, it reflects who's buying new, single-family homes.
The median new-home size now stands 3% below its recent high of 2,491 square feet in the third quarter of 2013. But it still is 8% higher than its recent low of 2,236 square feet in the third quarter of 2011.
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