The housing market is strong and both resale and new homes are strongly in demand. According to the U.S. Census Bureau Survey of Construction’s (SOC) 2020 new single-family homes with four or more bedrooms increased. This trend could be because of more homeowners having to live work and play in their homes due to the pandemic.
The SOC reported that across the country 45.2% of new single-family homes started in 2020 had four or more bedrooms. This was up from 2019’s report of 42.6%. Again this increase is due to the shift in buyers’ desires in a home. The pandemic devastated the US economy in 2020 paving the road for record low interest rates. The low rates coupled with low housing inventory shot house prices up. First-time homebuyers who would purchase a home with less than four bedrooms were pushed out of the market.
This caused a shift in homes. The 2020 SOC reduced share of new homes started with 2 bedrooms or less (9.7 percent vs 10.5 percent the previous year) corroborates the lowered presence of first-time homebuyers in the new home market that year.
The East North Central region was the only division that showed a decline in new single-family homes built with four or more bedrooms. Across the board, homes with less than 1,200 square feet had more homes built with fewer bedrooms.
If you are in the market for a new home, contact your local Realtor. A professional Realtor can help you through the whole process getting you what you want for the price you want.