Comments on: New Single-Family Home Size Trending Lower

By: Eduard

Eduard — Thu, 08 Jun 2023 17:13:42 +0000

This article about new homes trending smaller in size is an interesting look into the market, and indicates a potential decrease in construction costs,which could be beneficial for potential borrowers looking for construction loans. Check us at builderloans.net for your construction loans needs.

By: S. Robert August

S. Robert August — Fri, 26 May 2023 17:46:37 +0000

Remember, you are not selling square footage.

You are selling homes/lifestyle environments.

Do car manufacturers sell their cars by the pound?

Do suits cost more because someone is 6’2″ versus another buyer at 5’6″?

Onwards and Upwards with the ability to meet the market demand of buying versus renting!

By: Matt

Matt — Fri, 26 May 2023 01:22:20 +0000

In reply to Scott. So true. I'm a small homebuilder and I constantly have to explain to clients that it's not a 1:1 ratio when downsizing to a smaller plan. I'm currently building a 2000sf house and the $ psf is probably $20 dollars higher than a similarly spec'd 3000sf house I'm building. Permit fees don't decrease relative to house size, sprinkler systems, Stormwater management, grading etc. We also build Spec homes and in some cases we end up building larger houses because of the economies of scale.

By: Scott

Scott — Mon, 22 May 2023 15:06:00 +0000

It makes sense, but due to the high cost of getting to the foundation in residential construction and the limited cost impact of incremental downsizing of houses, the reduction in house prices isn’t as much as one would hope. For example, taking a 2500 sq ft home down to 2000 sq ft is a 20% reduction in size, but the cost savings might only represent a 5% reduction in the final building expense.