home size increase as lot size decrease

new trend by many homebuilders as they put smaller homes on larger lots

Many new homebuyers are getting more home for their money, but less land. The cost of getting more space in a home is causing for less outdoors space in 2016 and 2017. Getting both large land and a large house might cost potential owners more money.

square footage changes

New homes are getting larger, but their lot sizes are getting smaller. The median size of a new home increased from 1,938 square feet in 1990 to 2,300 square feet in 2016, but lot sizes during this same period decreased from 8,250 square feet to 6,970 square feet. That amounts to about a 16 percent decrease.

getting more land and more house

However, the trend hasn't been consistent, because between 2006 and 2011, homebuyers were showing demand for larger homes and larger lots. As home prices dropped during the housing crisis, greater affordability gave buyers opportunities to seek larger outdoor spaces. Today's pullback in lot sizes comes as builders look to cut costs.

evening out cost

"When home prices appreciate at a fast pace, the land value rises even faster, which, in turn, drives the cost of homes higher," according to CoreLogic's Insights blog. "In order to mitigate the high cost of the land value, home builders reduce the size of the lots to bring the cost of the new home down so they can price these homes at a reasonable level." Indeed, the data shows that sizable price gains on large homes between 2014 and 2016 put pressure on builders in the cost of acquiring and developing land. Many builders responded by building larger homes, but on smaller lots to accommodate.