Square Footage and Market Health

Economists watch housing markets to determine the state of the broader economy. New construction homes’ square footage can be an indicator of an oncoming recession, according to realtor.com.

“Typical new home size falls prior to and during a recession as home buyers tighten budgets, and then sizes rise as high-end home buyers, who face fewer credit constraints, return to the housing market in relatively greater proportions,” said Dietz.

Home sizes have been decreasing since mid-2015 according to realtor.com, although this could be because entry-level buyers are breaking into the housing market. For now, Dietz is not predicting a recession in the near future.

-Ashley Jorgensen

Sources:

https://www.realtor.com/news/real-estate-news/size-matters-tracking-the-economy-through-new-home-square-footage/

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