American homes are shrinking

Through June, new homes built in the U.S. were nearly 200 sq. ft. smaller than 2 years ago. Eric Belsky, exec. director of the Joint Venture for Housing Studies at Harvard Univ. told Parade magazine that the move to smaller homes could be a good thing for the construction industry. He said smaller homes are better suited for first time buyers, who are typically younger, with a lower income and looking for homes that are more modest. Stephen Melman, an economist with the Nat’l Assoc. of Home Builders, told Parade that empty-nesters are also attracted to smaller homes because they tend to be more energy-efficient and are much cheaper to maintain. Melman said people are buying homes the size that fits their needs right now, where in the past they would purchase a home with an extra 1,000 sq. ft. Parade reports the average new home size peaked in 2007 at 2,521 sq. ft. At that time, average house size in Germany and France was around 1,200 sq. ft. and 900 sq. ft. in England.