I presume the new home size information comes from permit applications? For heaven’s sake, are we really going back to McMansions?? I know that larger homes are more profitable for builders, but so soon after the housing crash I would have thought we would still be requesting modest new homes. There may also be a skew in the data (a mix issue) that more new homes today are move-up homes not starter homes? But I haven’t seen that from the builders in the Sea metro market (which admittedly is a pretty hot housing market).
Comments
I presume the new home size information comes from permit applications? For heaven’s sake, are we really going back to McMansions?? I know that larger homes are more profitable for builders, but so soon after the housing crash I would have thought we would still be requesting modest new homes. There may also be a skew in the data (a mix issue) that more new homes today are move-up homes not starter homes? But I haven’t seen that from the builders in the Sea metro market (which admittedly is a pretty hot housing market).