A lot of the time, the buzz around the small home market isn’t that it’s going to be the new hot thing.
People are excited about the new, new, and exciting things in their lives, but most people aren’t really excited about their small homes either.
And that’s a big problem.
A new report from the real estate website Zillow found that the small house segment is the only one that’s still a bubble.
ZillOW’s new “Big House Index” is an analysis of the growth of new single-family home construction in the United States since the start of the recession.
The index ranks the most common new housing type, which includes single-room occupancy (SRO), two- and three-bedroom houses, townhouses, and detached houses.
The index was last updated in 2016, and the report shows that while the number of new construction units is on the rise, the average size of the units remains stubbornly small.
Zillow defines a “big house” as a two- or three-story home that’s more than six stories tall and has more than 25,000 square feet of living space.
While the majority of the new housing in this category has been made available to buyers, the survey also found that nearly a quarter of new home sales went to buyers with the average asking price of $200,000.
That’s $11,600 less than the average price of new house sales in 2015.
The report found that while there’s been a lot of growth in this segment over the last decade, the price of this type of home has remained stable.
The median asking price for a new single room occupancy (LRO) home is $240,000, while the median asking value for a two or three bedroom house is $230,000 and the median price for two and three bedroom townhouses is $195,000 (the median price of a single-story townhouse is $235,000).
“The only segment that’s really seen significant growth over the past decade is the market for single-rooms-only houses,” said Mike Cipriani, Zillower’s vice president of research.
“They’ve seen the price drop in many of the markets.”
In other words, the majority market that’s been making the biggest waves is the one that didn’t have much demand in the first place.
Zestle, which specializes in new construction in rural areas, says that there were more than 11,500 new single bedroom homes built in the U.S. in 2016 and that the median sale price was $190,000 on average.
While that’s not the same as the $220,000 asking price that people are willing to pay for a townhouse or even the $200k asking price a buyer might be willing to shell out for a single room.
The market for new single rooms-only homes has grown over the years, especially in rural communities.
In the mid-2000s, single rooms were not a major trend in rural America, but the market has continued to boom in recent years.
While single rooms are still a relatively small segment of the market, many rural areas are experiencing a resurgence of activity and construction.
Zestle’s Ciprieani said that many buyers are interested in moving to more rural areas and that it has a lot to do with people’s love of their land.
“Most rural areas have a good history of the housing market and a desire to move to a different location,” Ciprisani said.
“It’s not about the price, it’s not really about the quality of the home, it comes down to a lot more than just a big house.”
Zillows analysis of all new construction between 2015 and 2016 showed that the average house size in rural U.