A new report from Zillow shows what kinds of homes Americans chose in the last year:
By and large, Americans chose bigger — and less expensive — homes, particularly if they moved across state lines. Zillow’s analysis looked at data from North American Van Lines, a trucking company based in Ft. Wayne, Indiana. This was “a notable reversal of trends from prior years,” Zillow economist Jeff Tucker said in the report.
The average home value in the ZIP codes that movers left was $419,344, versus $392,381 for the ZIP codes they relocated to. That represents a difference of roughly $27,000.
But a cheaper home doesn’t mean a smaller one. While the average size of the homes movers left behind was the largest since Zillow began tracking this data in 2016, the average size of the new homes people chose was even larger. The average difference in size, according to the analysis, was 33 square feet…
This is allowing Americans to get the most bang for their buck in the housing market, rather than needing to sacrifice affordability or space in the name of living closer to urban centers.
Is this a perfect distillation of the American Dream at this period of history? “The biggest house for the least amount of money.”
I wonder how this might affect broader patterns regarding the size of American homes. The size of new houses grew steadily from 1950 on but has leveled off in recent years. At the same time, I could imagine a scenario where small shifts as described above help keep inching up the size of American homes. Here is how this might work:
- From the summary, it sounds like people moved, on average, to slightly bigger houses. Having 33 more square feet is not that much – imagine a 5.5 x 6 foot space (bathroom? mudroom? closet?) – but it is an increase.
- There does seem to be some interest in not living in McMansions or extra-large houses (see a recent example). Some have suggested prior generations wanted crazy amounts of space while younger adults today want more reasonably sized homes.
- So imagine the standard size of a “small house” keeps inching up – there are fewer starter homes so people go to bigger houses, new or old, to start – while there is less interest in homes 4,000 square feet and up (which relatively few Americans owned in the first place). In other words, the size of American homes move more because truly small homes are phased out and truly large homes fall more out of favor.
A purchased home does not need to be a McMansion to be a bigger home compared to past standards or even smaller units today.