Rising Cost of New Homes Explained Simply: They’re Much Bigger
The cost of newly constructed homes in the U.S. has risen drastically over the last several years, and it’s no wonder; because as the Wall Street Journal points out, the driver is simple: houses are getting bigger.
According to CoreLogic, new-home prices rose 18 percent between 2010 and 2013, and much of that can be credited to the growing size of homes, as well as the amenities – like fireplaces and walk-in closets – that becoming increasingly standard.
Interestingly, the average new home last year sold for $343,000. But if builders had stuck to the size and amenity standards that were prevalent in the 1970s, the average price would have been closer to $199,000.
Image via flickr/Concrete Forms