Inside the Boom
Trends, Facts and Figures on New Home Building
JASPER, Ind. (November 15, 2005) ― According to the U.S. Census Bureau, 1,203,000 new homes were sold in 2004, up from 877,000 in 2000. What’s more, "It is now highly likely that housing production in 2005 will surpass the robust performance of 2004,� according to NAHB Chief Economist David Seiders. Within this boom several trends emerge, including:
Numbers on New Homes
Average 2004 new home price was $274,500, up nearly $70,000 from previous four years.1
Record number of new single-family homes sold in 2004. Value set a new annual record for the fourth consecutive year.2
Kitchens Today
Kitchens have seen a "growth in size and complexity…as they become the hub of the home, and increasingly incorporate some features usually found in living rooms, dining rooms or even home offices."3
According to NAHB, kitchen features rated as either desirable or essential by prospective home buyers include: walk-in pantries (78%), island work areas (71%) and light wood cabinets (59%).4
Freestanding ranges remain the most popular cooking appliance, but cooktop and wall oven combinations have increased in popularity in new homes.5
Laminate continues to dominate the kitchen countertop market, but its market share has fallen from 72 percent in 1997 to 53 percent in 2002, losing ground to solid surfaces, granite and engineered stone.5
The "New" New Home
Home sizes are plateauing according to the NAHB. The NAHB predicts that the median home size will remain around 2,300 sq. ft. with more emphasis being placed on quality, high-end amenities.6
Buyers of moderately priced new homes prefer a study or a getaway space off the foyer to a formal living room. In fact, about one-third of potential homebuyers are willing to forgo a living room altogether.7
Practical spaces not traditionally lavished upon are newly prominent. For example, buyers are outfitting home offices (found in 25% of all new homes) or investing in main-level laundry rooms with islands and storage for art or hobby supplies.7
Open floor plans are giving way to semi-open arrangements with partial walls that serve to define spaces and create storage.7
- U.S. Census Bureau.
- U.S. Dept. of Housing and Urban Development, Feb. 2005
- "Americans and Their Homes: Trends in Housing, Décor & Design, Electronics and the Garden," a study by Barbara Perrin produced by EPM Communications
- "Housing Facts, Figures, and Trends 2004," NAHB
- "NKBA Releases Consumer Trends Research," National Kitchen & Bath Association
- Gary Garczynksi, President NAHB, IBS 2005
- "Design Trends in New Homes," bhg.com
