Study: Average Size of New Home Drops 9% in Q3 2008

The average size of a new home in Q3 2008 was 2,438 square feet, a 9 percent drop from 2,629 square feet in Q2 2008, according to the U.S. Census Bureau.

Likewise, the median size of a new home in the third quarter of 2008 was 2,090 square feet, down from 2,291 in the spring of 2008.

New home sales dropped 2.9 percent in November 2008, and the National Association of Home Builders (NAHB) predicts new home sales will continue to plummet in 2009.

Finally, some sense appears to have arisen in the minds of new home buyers and homebuilders! Smaller homes mean more efficient homes with lower HVAC costs and more efficient use of space. Maybe some of that money can now be spent on electronics instead of 400-square-foot closets off the master suite.

I recall visiting model homes in Dallas years ago with closets that were literally half the size of my then-home in Redondo Beach, Calif. All I could think about was how much it would cost to cool that place during a hot Texas summer.

At the International Builders Show in Las Vegas, the NAHB wondered why the drop in size hadn't occurred sooner, according to MarketWatch.

And smaller homes don't necessarily mean fewer electronics. According to a joint NAHB/Better Homes & Gardens study, "Wii-sized rooms" are all the rage.