WASHINGTON -- Home builders are currently constructing slightly smaller homes, according to the U.S. Department of Commerce.
Data released by the Commerce Department shows the median size of homes under construction during the second quarter was at 2,478 square feet, the same size as during the first quarter. During a period of strong growth in housing size, the median size of U.S. homes was 2,491 square feet set in last year's third quarter. Since 2012 the median size of new homes has increased, data shows.
According to data of the 569,000 new home construction released by the U.S Census, 59,000 had two or fewer bedrooms and 251,000 had four bedrooms or more. More than half of the homes, 305,000, had two or more stories. When it comes to bathrooms, 27,000 had one and one-half bathrooms or less, whereas 188,000 homes had three or more bathrooms, the data shows.
Building permits for houses in July 2014 were at a seasonally adjusted annual rate of 1,052,000, up 8.1 percent from the revised June rate and up 7.7 percent from July 2013. according to the Census Bureau. Housing starts in July 2014 were at 1,093,000, up 15.7 percent from June and up 21.7 percent from July 2013.
Despite the slight dip in median size for home construction, strict mortgage controls and a sluggish economy will likely be the cause of the drop in first-time home buyers, according to the National Association of Home Builders. The NAHB predicted the first-time buyers would account for 16 percent of new home sales, down from 25 percent during the housing boom of 2001 to 2007.
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