More larger homes being built and hitting the market

New homes with 5,000 square feet or more of living space have hit a post-recession high of 3.9 percent of new homes started in 2015, according to the National Association of Homebuilders’ report A Rising Market Share of 5,000+ Square Foot Homes.

Last year, the total number of homes started with 5,000 square feet or more hit 28,000 units, up from a recession-low of 11,000 in 2009. Since 2009, construction of these larger homes has steadily risen. However, the percentage of homes that are 5,000 square feet or more has wavered. In 2012, only 2.8 percent of all homes constructed were 5,000 square feet or more, but the construction industry still built 15,000. The study also pointed out that last year the number of larger homes constructed was the highest since 2008, but the percentage of these larger homes was the highest since 2004.

The year 2006, which NAHB described as the “boom” year, 45,000 new homes started were at least 5,000 square feet. However, this only represented 3 percent of all homes constructed. The following year, the number of homes 5,000 square feet or more built was only 37,000, but represented 3.2 percent of all homes built. The study found that from 2009 to 2011, less than 13,000 of homes built were 5,000 square feet or more, and represented less than 3 percent of all new housing construction.

Interestingly, features in 5,000+ square feet homes tend to be similar. According to the report, seventy-nine percent have a finished basement, 68 percent have a three-car or larger garage, and 60 percent have a patio or porch. Additionally, more than half have at least five bedrooms, and 70 percent have at least four bathrooms.