It seems that smaller Vero Beach homes may finally be making a comeback. Data released recently by the Commerce Department shows the median size of a single-family home built in the third quarter was 2,414 square feet, down 2.3% from the second quarter measure of 2,472.
New Vero Beach Homes Smaller
The third-quarter figure is the lowest since 2012's fourth quarter, and it is the second consecutive quarterly decline following a 0.2% drop in this year's second quarter.
Median new-home sizes had been on a general upward swing since 2012 as builders focused on building increasingly larger, more expensive Vero Beach homes to cater to the better-heeled buyers with the income and credit to buy homes. Entry-level buyers, meanwhile, remained largely sidelined by luke-warm wage growth, mounting student debt and stringent mortgage-qualification standards.
Nationwide, construction starts for single-family homes increased by 4.2% from a year earlier to a seasonally adjusted annual rate of 696,000. The most likely source for that greater volume of starts is entry-level buyers.
The third-quarter decline in median new-home size doesn't necessarily reflect changes in preferences, it reflects who's buying new, single-family homes.
The median new-home size now stands 3% below its recent high of 2,491 square feet in the third quarter of 2013. But it still is 8% higher than its recent low of 2,236 square feet in the third quarter of 2011.
You'll find many more tips on buying Vero Beach homes in our Vero Beach Homebuyer Tips section of articles, as well as general information on Vero Beach homes in the Vero Beach Real Estate section under Vero Beach Real Estate Categories to your right.