An expected impact of the virus crisis was a need for more residential space, as people used homes for more purposes including work. Home size correspondingly increased in 2021 as interest rates reached historic lows. However, as interest rates increased in 2022 and 2023, and housing affordability worsened, the demand for home size has trended lower. As markets expect some decline for long-term interest rates, will new single-family home size reverse and move higher in 2025? Data from the end of 2024 suggests this may be occurring.
According to fourth quarter 2024 data from the Census Quarterly Starts and Completions by Purpose and Design and NAHB analysis, median single-family square floor area was 2,205 square feet, the highest reading since mid-2023. Average (mean) square footage for new single-family homes registered at 2,417 square feet.
The average size of a new single-family home, on a one-year moving average basis, trended higher to 2,373 square feet, while the median size is at 2,162 square feet.
Home size increased from 2009 to 2015 as entry-level new construction lost market share. Home size declined between 2016 and 2020 as more starter homes were developed. After a brief increase during the post-COVID building boom, home size has trended lower due to declining affordability conditions. As interest rates decline, new home size could level off and increase on a sustained basis in the quarters ahead.
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This article was originally published by a eyeonhousing.org . Read the Original article here. .
Make it clear that you place great emphasis on quality and that quality has its price. After all, you want to work with clients who appreciate good work and are willing to pay for it. This willingness on the part of your client may (or may not) become apparent early on.
Luisa Haase-Kiewning of Lu Interior Berlin, for example, started charging an extra fee several years ago. She charges for her time spent on the initial meeting as well as for travel time. This is justified as she arrives prepared and with good ideas after completing a certain amount of preparatory work prior to meeting with her clients.
And remember, if your client is not willing to pay for quality, it could be a warning sign that working together may not be smooth — or possible.
Lara Theel, managing director of Stand Out Design, recommends a similar approach. Explain to your clients, from the smallest to the largest items, how rising prices have affected the elements and materials in their project. Point out how companies that don’t pass along some of the current price increases are cutting back in other places.
Theel and her team focus on “longevity, quality and sustainability” and customers appreciate that.
Tip: Positive reviews on your Houzz profile and a visible Best of Houzz award help build trust and distinguish your excellent work from competitors.