A recent study conducted by home builders shows variations in home buyer preferences with regard to home size when it comes to age, race and ethnicity. These findings may prove useful to builders as they respond to rising demand for new homes and apartments.
Findings from "What Home Buyers Really Want," a survey of more than 3,600 home buyers across the country conducted by the National Association of Home Builders, show the median desired home size is 2,226 square feet. However, a closer look at the data indicates age plays an important role in space requirements of buyers.
Buyer's preferences regarding size of home drops steadily as the age of the buyer increases. Among those younger than 35, the desired home size is 2,494 square feet, compared to 2,065 square feet among those 65 and older.
"This study provides us with new insight into the home size preference of home buyers as a whole, but also across different demographic groups," said Rose Quint, NAHB's assistant vice president for survey research, and one of the study's authors.
Race and ethnicity also impacted home size preferences, with minority buyers desiring more space than white, non-Hispanic buyers. White, non-Hispanic buyers report wanting a home size of about 2,197 square feet, while Asian buyers desire 2,280 square feet, Hispanic buyers want 2,347 square feet, and African-American buyers prefer 2,664 square feet.
According to the U.S. Census Bureau, after peaking in 2006, median home size fell in 2007-2009, but reversed course and has risen for the past three years. Estimates indicate the median size of all single-family homes started in 2012 was 2,309 square feet, and the average was 2,521 square feet.
"We are receiving positive reports that home builders have boosted housing production in answer to the rising demand for homes and apartments. The survey of buyer preferences is important for builders and planners to take into account as they see populations grow and the need for housing become more pressing, especially in Silicon Valley, where land is scarce," said Carolyn Miller, president of the Silicon Valley Association of REALTORS®.
The NAHB reports single-family housing starts saw a 0.5 percent gain to a seasonally adjusted annual rate of 618,000 units in February, bringing them to their highest level since June of 2008, while multifamily starts rose 1.4 percent to 299,000 units. Overall permit issuance rose 4.6 percent to 946,000 units in February, the strongest pace since June of 2008. That gain included a 2.7 percent increase in single-family units and an 8.1 percent increase in multi-family units.
According to a December 2012 construction review released by the California Building Industry Association, California saw a 5 percent increase in housing permits from December 2011. Year-to-date permits increased 22.46 percent from the same time frame in 2011, increasing from 47,336 permits issued between January and December 2011 to 57,970 total permits for the same time frame in 2012. Single family permits issued in December 2012 increased 5 percent from November 2012 and increased 28 percent from December 2011. Multi-family permits increased 104 percent in December 2012 when compared to November 2012 and increased 12 percent when compared to December 2011.
The Silicon Valley Association of REALTORS® (SILVAR) is a professional trade organization representing over 4,000 REALTORS® and Affiliate members engaged in the real estate business on the Peninsula and in the South Bay. SILVAR promotes the highest ethical standards of real estate practice, serves as an advocate for homeownership and homeowners, and represents the interests of property owners in Silicon Valley.
The term "REALTOR®" is a registered collective membership mark which identifies a real estate professional who is a member of the National Association of REALTORS® and who subscribes to its strict Code of Ethics.
Variations of this article have appeared in local area newspapers.
For further information, please email or call the SILVAR office at (408) 200-0100.