As of August, new homes sales are said to have reached its highest level since 2008. With the increasing number of mortgage applications, homebuilders are encouraged to increase supply.
According to CNN, a data released Tuesday shows that construction groups have begun construction at the fastest rate since the housing crisis. Having said that, one can say that the market may finally be giving the U.S. economy the boost that it needs. Unfortunately, the data suggests that the market is actually very much different than it was before.
It has been found out that the median age of a homebuyer now is 43 where as in 1985 the median age was 35. In 2005 it was 39. Skylar Olsen, senior economist at Zillow says, "We consistently tell that story of people delaying homeownership. People are delaying things that pre-date homeownership -- like getting married later and having children later."
In addition, it was also observed that the homebuilders are more accommodating towards middle aged buyers that is why they now tend to building larger homes. Since 2008, according to CNN, a typical American home measures 1,800. It stayed that way for a while until recently the news homes that homebuilders make are now typically 2,200 square feet because buyers prefers homes that are at least that large, according to an analysis by the National Association of Home Builders.
Moreover, the reason why homebuyers, who are actually older, prefer a bigger space is because they want more bathrooms. "Builders are adding more bathrooms. You want a little bit more privacy," Olsen added.
It was also mentioned that larger homes equate to more money for the homebuilder. And the reason why the median age of homebuyer is now at 43, may be attributable to the fact that students have more debt that buying a home is not an easy option. However a recent study has debunked this idea.
