Share of New Homes with Patios Sets Record for Sixth Consecutive Year

2022-09-27T05:16:21-05:00

The share of homes built with patios hit a record high in 2021.  Of the roughly 1.1 million single-family homes started in 2021, 63 percent came with patios.  This number comes from NAHB tabulation of data from the Survey of Construction (conducted by the U.S. Census Bureau with partial finding from the Department of Housing and Urban Development).  Patios on new homes have become increasingly common recently, and 2021 marks the sixth consecutive year that the share of new homes with patios hit a record high. From the start of the downturn in 2007 through 2011, the share of new homes with patios was consistently under 50 percent—as low as 44.8 percent in the trough of 2009.  In 2012, the share jumped to 52.4 percent and has been consistently climbing ever since.  The incidence of patios on new homes has now increased in each of the past twelve years, except for 2015 when it remained unchanged. The geographic incidence of new homes with patios still in general resembles the pattern described in last year’s post.  At the low end of the scale, only 17 percent of new single-family homes built in the Middle Atlantic and 28 percent in New England came with patios in 2021.  At the high end, the incidence of patios on new homes was over 70 percent in the West South Central and South Atlantic divisions, and only a little under 70 percent in the Mountain states. The SOC data tell us how many new homes have patios but don’t provide detail about the nature of the patios.  Some of this detail, however, is available from the Annual Builder Practices Survey (BPS) conducted by Home Innovation Research Labs.  Unlike the SOC, the BPS explicitly includes pool decks in its patio category. For the U.S. as a whole, the 2022 BPS report (based on homes built in 2021) shows that the average size of a patio on a new single-family home is just a little under 300 square feet.  However, there is considerable geographic variation, with the average new-home patio reaching nearly 400 square feet in New England and the South Atlantic but falling to as low as 197 square feet in the West North Central, 210 square feet in the Mountain Division, and 229 square feet in the West South Central. On a square foot basis, poured concrete continues to be builders’ overwhelming favorite material for patios, except in the New England and Mid Atlantic divisions where concrete and brick pavers, respectively, are more common. Related ‹ Covid Era Impacts on Working from Home and Housing Market ImpactsTags: BPS, builder practices survey, concrete, economics, home building, housing, patios, SOC, survey of construction

Share of New Homes with Patios Sets Record for Sixth Consecutive Year2022-09-27T05:16:21-05:00

Median Price of a New Age-Restricted Home Up to $472,000

2022-09-09T10:18:43-05:00

Of the roughly 1,127,000 single-family and 474,000 multifamily homes started in 2020, 37,000 (15,000 single-family and 22,000 multifamily) were built in age-restricted communities, according to NAHB tabulation of data from the Survey of Construction (SOC, conducted by the U.S. Census Bureau and partially funded by HUD).  A residential community can be legally age-restricted, provided it conforms the one of the set of rules specified in the Housing for Older Persons Act  of 1995. NAHB was first successful in persuading HUD and the Census Bureau to produce  data on the age-restricted status of new homes in 2009, during the depths of the housing downturn.  In 2009r, builders started only 17,000 homes in age-restricted communities  (9,000 single-family and 8,000 multifamily).  The numbers subsequently increased, reaching a peak of 29,000 single-family and 31,000 multifamily age-restricted starts in 2018.  Although the number of age-restricted starts has fallen from that high point, this does not necessarily signal reduced interest in serving the market for home buyers age 55 or older, as new homes may be designed with features that tend to appeal to older buyers without being explicitly age-restricted. The SOC provides enough data to look at the characteristics of new age-restricted single-family homes to see if they differ from other single-family homes started in 2021.  In that year, the median age-restricted home was slightly larger than the median for other single-family homes: 2,400 vs. 2,300 square feet.  The median lot size for age-restricted homes, however, was somewhat smaller—roughly one-sixth of an acre vs. one-fifth.  Wednesday’s post examined trends in lot sizes in more detail, particularly how the share of homes built on smaller lots continued to increase during the pandemic.  Another trend that continued during the pandemic was rising house prices.  The median price of a new, age-restricted single family homes started in 2021 and built for sale was $472,000—$100,000 higher than it was a year earlier and considerably above the $400,000 median price of non-age-restricted homes started in 2021. Other questions in the SOC show that new single-family homes are more likely to be attached (i.e., townhomes), and single story with no basement if the homes are age-restricted.  The age-restricted homes are also more likely to come with patios, but less likely to have decks.  Finally, age-restricted homes are less likely to require a loan and more likely to be purchased for cash, as home buyers who are older have had more of a chance to accumulate the savings and assets (often equity in a previous home) that can be converted to cash. Related ‹ AD&C Loan Balances Rise as Sales SlowTags: 5+ housing, age restricted, economics, home building, housing, SOC, survey of construction

Median Price of a New Age-Restricted Home Up to $472,0002022-09-09T10:18:43-05:00

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