Americans buying bigger, pricier homes

Marketwatch reports:

The size of new homes rose last year, suggesting Americans' love of space remains strong but making new homes less affordable for a bigger swath of buyers.

The average size climbed to about 2,720 square feet in 2015 from about 2,660 square feet the previous year, according to data released by the National Association of Home Builders at its annual trade show.

Almost half of the homes started last year had four or more bedrooms, and one out of four had garages with room for three or more cars.

That isn't necessarily a sign of strength in the housing market, however.

Home sizes have grown lately because new construction has been tilted toward the high end. Builders do aim to draw young buyers in at lower price points, so that there is a market for some of their more expensive products over the long term. But they haven't made more starter homes in recent years mainly because of land prices, construction costs and lack of available mortgages for less-affluent buyers.

Those potential buyers, who may also be younger, help bring down the average size of new homes because they tend to live in smaller spaces than their older counterparts. They have been slow to purchase homes because they are struggling to save for down payments or be approved for mortgages.

The average price of new homes for sale in 2015 climbed to $351,000, up $100,000 from 2009.

The average new-home size bottomed during the 2008 financial crisis at about 2,360 square feet and climbed sharply before leveling out last year.

If Bernie Sanders turns America into Denmark: you can expect American homes to become smaller just like they are in Denmark.