In our last blog, we looked at average home sizes across the country and how homes are getting bigger as households are getting smaller. So how do we stack up? We’re going to look more closely, dialing in on the average home size in Phoenix and Arizona golf communities.
According to CNN and the 2015 U.S. Census, the median size of a new single family home is hovering around 2,500 square feet. According to our trusted real estate experts at the Cromford Report, the average home size in Phoenix and the surrounding suburbs is quite a bit under the average. Take a look at the chart below outlining cities and the average home size over the last 14 years.
Although our AZ golf homes are under the average, we are certainly following suite with the growth in average home size. Home buyers in all major cities in Phoenix except Scottsdale are purchasing larger homes now than 14 years ago, even during the housing bubble.
So even though the average home size in Phoenix is rising, what accounts for the almost 500 square foot deficit from the national average? The basic answer is that home buyers purchase what they can afford. As home process and interest rates fluctuate, home buyers respond by purchasing smaller homes or changing locations.
The Journal of Urban Economics just released a new study that looks at the effects of recessions and business cycles in major cities across the country. Cities that are hit hardest by recessions and dips in business cycles are those they call “rustbelt,” industrial-oriented cities like Detroit and Cleveland, and “sunbelt,” sprawling sunny oasis’s like Las Vegas, Tampa and Phoenix.
Sunbelt cities rely heavily on sprawling housing and tourism, two elements that take a hit during rough times. As we have what economics call “lower housing price elastics,” we are more dependent on the housing market and this could account for our lower average home size in Phoenix. The cities that stood up against the recession are those with knowledge and talent-based economies, like Denver and Austin, and just like what’s been developing at ASU SkySong and other high tech Valley hot beds over the last several years.
While there’s no special number or square footage to strive for in home buying, it’s always good to know averages and how your city compares to the rest of the country, especially if you own multiple homes. Whether you’re upsizing to accommodate a growing family or a desire for wide open space, or you’re downsizing for retirement, the Matheson Team can help you find the perfect place. We’re experts in AZ golf homes and will help make your experience and your dream home more than just average!
Realtor | Founder
The Matheson Team – RE/MAX Fine Properties
21000 N. Pima Rd., #100, Scottsdale, AZ 85255
602-694-3200 or 888-656-4830