Share of Homes Built in Community Associations Edges Down Again

2023-12-07T10:21:12-06:00

By Ashok Chaluvadi on December 7, 2023 • According to data from the Census Bureau’s Survey of Construction (SOC), 62.6% of single-family homes started in 2022 were built within a community or homeowner’s association.  This marks the second year in a row that the share declined, from the high point of 67.1% posted in 2020, and 65.5% in 2021.  Prior to 2021 the share had been on a decade-long upward trend.  In absolute numbers, a total of 623,096 homes were started in community associations in 2022, compared to 729,109 in 2021. The Census Bureau defines community or homeowner’s associations as “formal legal entities created to maintain common areas of a development and to enforce private deed restrictions; these organizations are usually created when the development is built, and membership is mandatory.” When analyzed by the 9 census divisions, the highest share was in the Mountain Division, where 78.6% of new homes were in such communities. In the New England Division, on the other hand, the share was only 34.5%. In the South Atlantic Division 71.4% of new homes started in 2022 had a community or home owner’s association, followed by the West South-Central Division at 68.6%, and the Pacific 52.4%. In the West North-Central Division, the share was 46.7%, while in the East North-Central Divisions it was 44.3%. In the East South-Central and Middle Atlantic Division 42.3% and 34.8% of new homes started in 2022 were within a community or home owner’s association, respectively. ‹ Two-Story Foyer Trend Sees a Slight Increase in 2022Tags: construction, economics, home building, housing economics, single-family, starts, survey of construction

Share of Homes Built in Community Associations Edges Down Again2023-12-07T10:21:12-06:00

Share of New Homes with Decks Under 18% Again

2023-12-04T14:17:06-06:00

As discussed in Eye on Housing last year, builders have been including decks on fewer and fewer new homes recently.  According to NAHB tabulation of data from the HUD/Census Bureau Survey of Construction (SOC), well over 20% of all single-family homes started had decks from 2005 through 2018—as many as 27% in 2007 and 2008.  After 2017, however, the share started to drop every year, reaching a low of 17.5% in 2021.  In 2022, the share increased, but just barely, to 17.7%. This happened while, as shown in an October post, the share of new single-family homes with patios was climbing to an all-time high of 63.3%.  In fact, the correlation over time between the percentages of new homes with decks and patios between 2005 and 2002 was -.82, suggesting that patios on new homes have been serving as a substitute for decks. The tendency of patios to substitute for decks—i.e., patios being more common where decks are less common—is also evident at a single point in time across the nine Census divisions.  In 2022, the share of new homes with decks was at its lowest in the West South Central and South Atlantic divisions (4 and 13 percent, respectively), the same two divisions where the share of new homes with patios was at its highest (over 70 percent).  Across all divisions in 2022, the correlation between the percentages of new homes with decks and patios was -.76. Nevertheless, decks remain relatively popular on new homes in several divisions.  At the top, 62% of new homes in New England came with decks in 2022, followed by 45% in the West North Central and 37% in the East South Central. Moreover, NAHB surveys show that home buyers like decks nearly as much as they like patios.  In the 2021 edition of What Home Buyers Really Want, 75% of recent and prospective buyers rated decks essential or desirable—not too far below the 82% for patios.  NAHB will be releasing a new version of this study with more recent preference data at the 2024 IBS. Beyond the SOC, detail on the characteristics of decks on new homes is available from the Annual Builder Practices Survey (BPS) conducted by Home Innovation Research Labs. For the U.S. as a whole, the 2023 BPS report shows that the average size of a deck on a new single-family home built in 2022 was 309 square feet.  Across Census divisions, the average size ranged from a low of 221 square feet in the Mountain division to a high of 464 square feet in the Middle Atlantic and West South Central.  The BPS also shows a geographic split in the material builders prefer to use in new home decks.  In the New England, West North Central, South Atlantic and East South Central divisions, treated wood remains their top choice.  In the other five divisions, composite has moved ahead of treated wood—and usually by a wide margin. Decks may also be added to a home after it has been built, of course, and this is one way in which decks seem to be outdoing patios.  In the survey for the NAHB/Westlake Royal Remodeling Market Index, 23% of professional remodelers cited decks as one of their most common projects in the third quarter of 2023, compared to 15% for patio additions. ‹ October Gains in Private Residential Construction SpendingTags: BPS, builder practices survey, composite, decks, economics, home building, housing, patios, SOC, survey of construction

Share of New Homes with Decks Under 18% Again2023-12-04T14:17:06-06:00

Number of Bathrooms in New Single-family Homes in 2022

2023-11-14T08:16:04-06:00

By Jesse Wade on November 14, 2023 • The Census Bureau’s latest Survey of Construction (SOC) shows minor changes in the number of full and half bathrooms for new single-family homes started in 2022 compared to 2021. The current data shows that 4.4% of new single-family homes started had one full bathroom or less, 62.3% had 2 full bathrooms, 25.8% had 3 full bathrooms and 7.5% had 4 or more full bathrooms. Figure 1 shows how the share of new single-family home starts by full bathrooms has changed dating back to 2005. The share of new single-family homes with one or less full bathroom and four or more full bathrooms increased from 2021 while the share of new single-family homes with two full bathrooms and three full bathrooms decreased. Despite falling from 2021, homes with two full bathrooms continues to have the highest share of new single-family home starts. This share has fluctuated between 69.9% and 59.3% of all new homes since 2005 with the lowest level of 59.3% in 2015. The share of new single-family homes with two full bathrooms was at 62.3% in 2022. Figure 2 indicates that the share of new single-family homes started in 2022 with two full bathrooms varies across the country. The East North Central census division had the highest share at 70.8% of new single-family homes having two full bathrooms. The lowest census division was the Pacific, with a share of 51.7% new single-family homes having two full bathrooms. In 2022, a majority of new single-family homes (53.5%) had no half-bathrooms. 44.8% of new single-family homes had one half-bathroom. New single-family homes with two or more half-bathrooms had a share of 1.7% in 2022. Half-bathrooms are historically prevalent in the New England census division as 79.5% of new single-family homes had at least one in 2022. The share of new single-family homes in New England that contained at least one half-bathroom averaged 78.2% between 2017 and 2022. Over the same time period, new homes constructed in the East South Central division with one or more half-bathrooms saw an increase in frequency. In 2017, only 29.3% of new homes had at least one half-bathroom in the East South Central. This share rose 8.7 percentage points to 38.0% in 2022, the largest increase over this time. Conversely, the pervasiveness of new homes with at least one half-bathroom fell 10.6 percentage points in the Pacific division, from 52.1% to 41.5% in 2022. Related ‹ Builders and Lenders Agree: Credit is TighteningTags: bathrooms, new homes, Single-Family homes, SOC, survey of construction

Number of Bathrooms in New Single-family Homes in 20222023-11-14T08:16:04-06:00

Porches on New Homes as Popular as Ever

2023-11-07T09:16:44-06:00

Porches have been a popular home feature, consistently ranking in the top 10 in the NAHB surveys of recent and prospective home buyers published in What Home Buyers Really Want.  And porches remain as popular as ever specifically on new homes, according to NAHB tabulation of the latest Survey of Construction (SOC, conducted by the U.S. Census Bureau with partial funding from HUD) data.  Of the roughly one million single-family homes started in 2022, the SOC data show that 66.4% came with porches.  This is the highest the share has been since the re-design of the SOC in 2005. Recent year-to-year fluctuations in the share of new homes with porches have not been very large, however.  Since climbing to 63% for the first time in the 2009 trough of the Great Recession, the share hovered in a relatively narrow band between 63% and 66% before finally breaking above 66% for the first time in 2022. Traditionally, porches on new homes have been most common in the four states that make up the East South Central Census division.  That was true again in 2022, although the gap has narrowed.  In 2022, 80% of new homes in the East South Central had porches, but the share was over 70% in four of the other eight divisions: the Pacific (78%), New England (73%), Mountain (72%), and South Atlantic (71%) divisions.  Compared to the previous year’s results, the share of new homes with porches jumped upward by 7 to 10 percentage points in the Pacific, New England, and South Atlantic Divisions, but actually declined by 7 points in the East South Central. The SOC provides information about the number of new single-family homes with porches, but not many details beyond that.  Additional information, however, is available from the Builder Practices Survey (BPS), conducted annually by Home Innovation Research Labs.  Among other things, the 2023 BPS report (based on homes built in 2022) shows that porches continue to be most common on the front of new single-family homes, rather than on the side or rear.  Whether  front, side or rear, the size of the porches tends to average a little over 100 square feet—unless it is a screened-in porch, in which case the average is well over 200 square feet. To build their new home porches, builders continue to use concrete more than any other material on a square-foot basis—except in New England, where treated wood, composite, natural stone, and PVC or other plastics are each used more than concrete. Readers interested in how well builder practices are tracking recent trends in consumer preferences. should watch for the 2024 edition of What Home Buyers Really Want, which will be released at the next International Builders Show Related ‹ Type of Parking Facility of New Single-Family Houses Completed: 2022 DataTags: BPS, builder practices survey, concrete, economics, home building, housing, porches, SOC, survey of construction

Porches on New Homes as Popular as Ever2023-11-07T09:16:44-06:00

Patios Are Increasingly Popular on New Homes

2023-10-05T08:14:40-05:00

The share of homes with patios edged up to another record high last year.  Of the roughly one million single-family homes started in 2022, 63.3%  percent came with patios—up from 63.0% in 2021, and the seventh consecutive year of setting a new record.  The source for these numbers is 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). Historically, fewer than half of new homes came with patios during the 2008-2011 period of extreme weakness in housing markets  After that, the share of new homes with patios jumped to 52.% in 2012 and has been climbing ever since.  The percentage has now increased in twelve of the past thirteen years; the lone exception being 2015, when it was unchanged. While patios on new homes have generally become more popular, the places where they tend to be most and least popular have not changed much.  At the low end, only 18% percent of new single-family homes built in the Middle Atlantic and 21% in New England came with patios in 2022.  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.  All these geographic tendencies are similar to the ones reported in last year’s post on patios. For extra detail on the nature of the patios being built, we can supplement the SOC with data from the Annual Builder Practices Survey (BPS) conducted by Home Innovation Research Labs. For the U.S. as a whole, the 2023 BPS report (based on homes built in 2022) shows that the average size of patios (which in the BPS includes pool decks) on new single-family homes is about 280 square feet, but with considerable geographic variation.   The average is over 350 square feet in New England and the South Atlantic; but as low as 166 square feet in the West North Central, 188 square feet in the West South Central, and 209 square feet in the Mountain Division. Measured per square foot, builders use poured concrete more than any other building material for patios.  In most parts of the country, there is not even a close second.  In the New England and Mid Atlantic divisions, however, builders use natural stone and brick pavers, respectively, almost as much as poured concrete. Related ‹ Multifamily Completed in 2022: Primarily Built-For-Rent and High-Density BuildingsTags: BPS, builder practices survey, concrete, economics, home building, housing, patios, SOC, survey of construction

Patios Are Increasingly Popular on New Homes2023-10-05T08:14:40-05:00

Number of 5,000+ Square Foot Homes Down in 2022

2023-09-28T10:23:23-05:00

According to the annual data from the Census Bureau’s Survey of Construction (SOC), a total of 29,000 5,000+ square-foot homes were started in 2022, down from 33,000 in 2021.  In the boom year of 2006, the number of new 5,000+ square foot homes reached a peak of 45,000.   In 2007, the number fell to 37,000.  In 2008, only 20,000 such homes were started, and from 2009 to 2012, the number remained well under 20,000 a year, but has been consistently above 20,000 since then. On a percentage basis, the share of new homes started with 5,000 square feet or more of living space was also down slightly, from 2.90% in 2021 to 2.85% in 2022.  In 2015, the 5,000+ square foot home share reached a peak of 3.92%.  Since then, the share has fluctuated in a band between 2.50% and 3.10%.  The 2022 decline in the share of 5,000+ square foot homes is consistent with the recent downward trend in median and average size of new single-family homes reported elsewhere. Tabulating the major characteristics of 5,000+ square foot homes started in 2022 shows that 80% have a porch, 70% have a finished basement, 68% have 4 bathrooms or more, 66% have a patio, 67% have a 3-or-more car garage, 56% belong to a community association and 54% have 5 bedrooms or more. Related ‹ Lot Values Trail Behind InflationTags: economics, eye on the economy, home building, housing economics, single-family, starts, survey of construction

Number of 5,000+ Square Foot Homes Down in 20222023-09-28T10:23:23-05:00

New Homes Same Size but Higher Priced if Age-Restricted

2023-09-25T08:17:51-05:00

Of the roughly 1,005,000 single-family and 547,000 multifamily homes started in 2022, 59,000 (28,000 single-family and 31,000 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 collect and publish data on the age-restricted status of new homes in 2009, during the depths of the housing downturn.  In 2009, builders started only 17,000 homes in age-restricted communities  (9,000 single-family and 8,000 multifamily).  The numbers then increased steadily until reaching 60,000 age-restricted starts, roughly evenly split between single-family and multifamily) in 2018.  In 2022, the 28,000 age-restricted single-family starts were slightly off the peak of 33,000 reached a year earlier, and the 31,000 age-restricted multifamily starts tied the all-time high set in 2018.  Although we don’t yet have data on age-restricted starts for 2023, a recent post shows that starts in general have been running lower than they were a year earlier, due largely to the Federal Reserve’s policy of interest rate hikes to tame inflation. 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 2022.  This exercise shows that the age-restricted homes tend to be about the same size as others, but on somewhat smaller lots and higher-priced.  The median size of an age-restricted home was exactly the same as the median for other single-family homes in 2022: 2,300 square feet.  As usual, however, the median lot size for age-restricted homes, was somewhat smaller—just under one-sixth of an acre vs. one-fifth for homes started outside of age-restricted communities.  There has been a general trend toward smaller lot sizes, as described in a September 8 post.  Another trend that has continued is the one toward higher house prices.  The median price of a new, age-restricted single family home started in 2022 and built for sale was $472,000—$75,000 higher than it was a year earlier and considerably above the $461,000 median price of non-age-restricted homes started in 2022. 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 ‹ Employment Situation in August: State-Level AnalysisTags: 55+ housing, age restricted, economics, home building, housing, SOC, survey of construction

New Homes Same Size but Higher Priced if Age-Restricted2023-09-25T08:17:51-05:00
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