U.S. Homes Are Getting Larger

962 square feet. That was the median size of a home in the United States in 1975. Fast forward four decades and that number has ballooned by 61% to 2,467 square feet. That's 11% larger than even a decade ago.

According to a recent piece by the Wall Street Journal, U.S. homes also include more amenities than they did forty years ago, such as additional bathrooms and central air conditioning. Comparing homes in 1975 to 2015, 46% of homes were built with air conditioning compared with 93% today. About 96% of new homes last year had at least two bathrooms versus 60% four decades earlier.

This could explain why the cost of new homes is on the rise. Even when adjusted for inflation, new home prices hit an all-time high last year, with a median price of $296,400. However, the housing market is strengthening. April saw the highest number of sales in more than eight years. Sales of existing homes also rose in April, and make up the bulk of the market. While the number of starts is still low, economists are optimistic that it will continue to grow.

Knowing the trends and knowing your customers will help you as you move forward in building new starts.