June 26, 2015

NO ONE HAS IT HARDER THAN THEIR FATHER DID:

Today's new homes are 1,000 square feet larger than in 1973, and average living space per person has doubled (Mark J. Perry, June 26, 2015, AEIdeas)

With the average new house in the US getting larger in size at the same time that American households are getting smaller, the square footage of living space per person in a new home has increased from 507 to 987 square feet using the median size home, and from 551 to 1,059 square feet using the average size home. In percentage terms, that's a 95% increase using the median home size and a 92% increase using the average home size. In either case, the average amount of living space per person in a new home has almost doubled in just the last 41 years - that's pretty amazing.

3. What about the cost of new homes over the last 41 years? On a per square foot basis using median home prices and median square footage, the inflation-adjusted price of new homes (in 2014 dollars) has been relatively stable since 1973 in a range between about $104 and $130 per square foot (see bottom chart above). And the price of just under $113 per square foot for new homes sold in 2014 was almost 14% below the peak of $130.67 per square foot for a new home in 2005, and was also below the cost per square foot in most years during the 1970s and 1980s, and below the cost per square foot in every year from 2004 to 2008.

Posted by at June 26, 2015 7:10 PM
  

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