In Response to COVID-19 Pandemic and Economic Slowdown Home Sizes Shrink in Q2

According to data from the second quarter of 2020, Census Quarterly Starts and Completion by Purpose and Design report and analysis by the National Association of Home Builders (NAHB) median single-family homes sizes decline during the Q2 of 2020. This in sharp contrast to the forecast at the start of 2020 that home size were going to be growing larger over the next two years. It is important to note that typically home sizes decrease prior to and during a recession as home buyers limit their budgets. They usually expand as the recession comes to an ends and home buyers with great confidence in the economy search for larger homes. The NAHB is saying that going forward they expect a different post-recession pattern. Home size is expected to level off and then increase, given a shift in consumer preferences for more space due to the increased use and roles of homes (for work, for study) in the post-Covid-19 environment.

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