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01.31.17

PulteGroup: New Homebuyers Did Not Downsize Their Home In 2016

 

ATLANTA, February 6, 2017 – Homebuyers have a love affair with big houses as the average square foot of a PulteGroup home in 2016 was 2,261 square feet, an increase of 30 square feet from 2015.

Home size increased nearly in every PulteGroup division, which is based on 19,951 closings across 50+ markets and including all its brands: Centex, Pulte Homes, Del Webb, DiVosta Homes and John Wieland Homes and Neighborhoods,

“We invest significant time and resources to understanding our consumers,” says Jay Mason, vice president of market intelligence for PulteGroup. “While house size did get larger in 2016, we have heard from every buyer group that they value functionality and smartly-designed homes without wasted space. This doesn’t necessarily translate into smaller homes.”

Here are some highlights regarding home size based on PulteGroup closings in 2016.

Home size has been slowly getting larger since 2011: Consistent with the trend of house size on the rise from U.S. Census Bureau data, PulteGroup has shown a 7.3 percent increase in home size since 2011, growing from 2,085 to 2,261 square feet.

Millennials Choose “Move-Up” Homes in Suburban Settings:  After five straight years of the square footage increasing for the Pulte Homes brand, it took a slight dip from 2,496 to 2,446.
Mason says the 50 square feet differential is partly driven by the Company’s focus to expand its community offerings to be in closer-in locations to meet the needs of the older millennial buyer – and even the empty-nester buyer. These closer-in locations typically have attached home product like townhomes or condos or single family homes on smaller lot sizes.

“By building communities near town centers, we can give millennials a version of the urban lifestyle vibe, yet in a suburban setting,” says Mason.

Millennials and Baby Boomers Are Practically the Same: When it comes to housing preferences and community location desires, baby boomers and millennials want the same things. So, it’s not surprising to see that boomers on average purchased a 1,999-square-foot home, which is similar to millennials purchasing a 1,922-square-foot home.

“Boomers and millennials love to entertain family and friends and this affects the types of features they want in their home, like outdoor space and open living floor plans. They also have a strong desire to be near amenities, specifically near a city’s offerings like entertainment, arts, dining and shopping. Over the past few years, we have seen both millennials and 55+ buyers interested in the same communities, especially those closer-in locations offering with easy access to amenities and outdoor space,” says Mason.
 
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