While 2015 saw the median size of homes in Hamilton County and surrounding areas increase in number of bedrooms and square footage, smaller homes are making a comeback in 2016. After several years of growth in size, the first half of 2016 saw a slight decline (from 2,465 to 2,392 square feet) and plateau in median square footage of single-family homes. Economists point out this is a positive step in the post-recession cycle of economic recovery.
Chief Economist Robert Dietz at the National Association of Home Builders History recently commented that history has shown us this pattern before, when the country was recovering from previous recessions. During a recession, production of larger, high-end homes ramps up because the buyers of those homes typically have fewer credit constraints than the would-be buyers of more modest homes. This recent decline in home size indicates that smaller homes are increasingly popping up as the economy strengthens and more entry-level buyers return to the market.
An expanding market of entry-level homes in many areas of the country typically includes increased production of townhomes, which range considerably in size and price but are often smaller and less expensive than single-family homes. Townhomes make up a relatively small share of the new homes being built, but what many of them offer – medium-density, “urban village” neighborhoods with conveniently located amenities –is very appealing to a large number of buyers from all age groups.
From large custom homes to smaller entry-level homes and everything in between, builders across the Chattanooga are creating dream homes for their clients each and every day. Contact the Home Builders Association of Greater Chattanooga at HBAGC.net to learn more about the countless benefits of owning a new home.