The Wall Street Journal ran an article on Friday, June 8th that homebuilders are reporting that bigger homes are "making a comeback". KB Homes, for example, states that the average square footage of new homes under contract is up 13% from last year. From a broader perspective, according to data from the US Census Bureau, the average size of a newly built home in 2011 was almost 2500 square feet, which is an increase of 3.7% from 2010, according to WSJ article. Furthermore, it is the first increase in finished square footage since 2007, when the trend toward frugality and austerity led to several years of home builders reducing the size of the homes they built. With that being said, and again, according to the WSJ article, buyers are still being practical by using the additional square footage for additional living space as opposed to "bling" options, as a representative of KB Homes put it. Things like an additional bedroom are winning out over large sunrooms, vaulted ceilings, and soaring entry halls.

In the Minneapolis-St. Paul area market, per data from the Regional Multiple Listing (RMLS), the New Construction Median Sales Price (as of April 2012) is up by over 6% from the prior year for a traditional, single-family home - while the greatest percentage of increased sales is in the $250K - $500K price range. Perhaps the WSJ got it right: Due to historically low interest rates, people are using the additional buying power to their advantage and gaining more for less. Maybe bigger homes ARE making a comeback....