Builders put up the fewest houses last year since World War II, but they were the largest houses ever.
The average size single-family house started in 2011 was 2,522 square feet, 6% larger than the typical house started in 2010, and larger still than the record 2,504 square feet set in 2007, according to the National Association of Home Builders.
More houses had four or more bedrooms than ever before, as well as more three-plus full baths and more finished basements.
The shift to ever-larger houses belies the anticipated trend toward smaller homes, not bigger ones. But it may be an anomaly, according to NAHB economist Rose Quint, because the only people who could purchase new homes last year were those with well-documented incomes, strong employment histories, great credit and lots of cash for a downpayment.
And as a result, first-time buyers, the ones who tend to purchase less expensive, smaller homes with fewer features and amenities, were largely ignored by homebuilders.
"The market was dominated by a segment of buyers who tend to buy better-than-average homes," Quint said at the group's annual convention in Orlando. "You pretty much had to be a superstar to buy last year, and that forced builders to chop off the lower half of the market."
A research specialist at the NAHB, Quint thinks this will change once lenders loosen their requirements and "allow less creditworthy buyers back into the market."
But perhaps not this year, at least not if what builders told the association in a December poll is on target.
The survey found that builders are still building for the well-heeled market. Not only are 47% planning no change in the size of their houses they put in the ground this year, 14% said they are switching to larger ones. At the same time, 38% are not going to move out of their current price range, but 12% are moving up to more expensive models.
