2010 New Home Characteristics: Smaller, More Expensive

In 2010 new home characteristics followed a steady trend of building houses smaller and more expensive.

American single-family homes are getting a bit smaller, and a bit more expensive, according to the annual “Characteristics of New Housing” released by the Census Bureau for 2010. The report, which was released earlier this month, covers the details on features and standards for new home construction.

According to the report’s findings, the average American home is about 2,392 square feet—on a lot sized at about 17,590 square feet—and built upon a slab foundation. The home is slightly more likely to be two-storied than one, and holds three bedrooms, three bathrooms, and at least one fireplace. Those living in the South are 99 percent likely to have an air-conditioned home, while those out West are keeping cool only 64 percent of the time.

Also according to the gathered statistics, home prices ticked up slightly in 2010, coming to rest at an average sales price of $272,900. This is up $2,000 from 2009, but down nearly $41,000 from the $313,600 peak seen in 2007. The current average sales price puts home values at just under the average seen in 2004 of $274,500. Average home sales prices by region were as follows:

• Northeast: $415,800
• Midwest: $232,800
• South: $244,900
• West: $316,600
Home prices are down most precipitously in the West, where the 2010 average falls $89,300 below the 2006 peak.

Yet another telling statistic? The percentage of homes financed by conventional loans in 2010 was 58 percent. That number was 62 percent in 2009, and 74 percent in 2008. The numbers show the rise of the FHA-backed loan, as well: 25 percent of single-family homes sold in 2010 used an FHA loan for financing, versus only 16 percent in 2008.

Price-per-square-foot metrics tell an interesting story of ongoing market demand, with $/sq. ft. the highest in the Northeast, where it averages $111.05. The West follows close behind with an average cost of $102.75/sq. ft., then the Midwest with $85.24 and the South the most affordable at $75.72 per square foot.

Square footage has dropped by 149 square feet since its peak of 2,521 in 2007. The average new home size when the Census Bureau began tracking home characteristics in 1978? A relatively snug 1,755 square feet.

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