Why some new Illinois homes are getting smaller
Add Axios as your preferred source to
see more of our stories on Google.
Illustration: Lindsey Bailey/Axios
Expect fewer hallways and more nooks that work as "pocket offices" or pet rooms in newly built homes across the country.
Why it matters: Builders and architects say they're using every square foot of space as many shrink houses to cut costs.
- "All that Tetris we played in the '90s has finally paid off," experts at John Burns Research and Consulting wrote in a recent report surveying industry pros nationwide.
State of play: In the northwest suburb of Huntley, Lennar is building homes that measure 1,500 square feet, featuring open floor plans and dens tucked off the foyer, for over $400,000.
- Similarly petite homes are underway in Harvard, located about two hours northwest of Chicago, geared toward empty nesters seeking "compact luxury" living, Crain's reports.
The big picture: Large homebuilders such as Lennar and D.R. Horton are churning out smaller houses, partly to attract first-time buyers.
- It's about "affordability," D.R. Horton CFO Bill W. Wheat told analysts earlier this year.
By the numbers: The national median new home price held steady at $417,300 in June from a year earlier, Census Bureau data shows.
- Compare that with existing home prices, which recently hit a new high of $426,900, per the National Association of Realtors.
The latest: Over a third (38%) of U.S. builders say they constructed smaller houses last year, and 26% plan to go even smaller this year, according to the National Association of Home Builders.
- The downsizing comes as high interest rates have hiked costs for both buyers and builders.
What's next: Starter homes might look cramped with tighter kitchens and outdoor spaces, John Burns Research and Consulting found.