Trend for smaller new homes expected to continue

For the first time in the past 30 years, new homes were smaller than a year ago. Several sources expect the trend to continue.

For example, the National Association of Home Builders predicts that U.S. houses will average 2,152 square feet in 2015, which will be down 10 percent compared to last year.

Smaller homes near restaurants and retail may be the most in demand as the housing market crawls out of its slump, housing experts say.
Homes with 2,600 square feet or larger were popular during the years of the housing boom, but now are only desired by 18 percent of households today, according to a survey by Trulia.

“Baby boomers are trading down. They don’t need the McMansion, and they don’t want to drive as much,” Jed Kolko, Trulia’s chief economist, told Money Magazine.