Bloomberg Anywhere Remote Login Bloomberg Terminal Demo Request


Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.


Financial Products

Enterprise Products


Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000


Industry Products

Media Services

Follow Us

Home Builder Shows Really Small Homes

Posted by: Chris Palmeri on February 17, 2009

In this brutal housing market, new home builders are thinking small, small, small. For decades the average size of a U.S. Home had been rising, from 1,700 square feet in the 1970s to almost twice that recently. Analysis by the National Association of Home Builders suggests the average home size fell 7% in last year’s third quarter to 2,400 square feet. Some builders are going even smaller than that.

Los Angeles based KB Home has seen its target home size shrink from 3,400 square feet to 2,400 to 1,200. Recently the company unveiled models in suburban Houston that are just 881 square feet.

According to the Houston Chronicle, the company is targeting singles and couples without kids. The two bedroom, “apartment size” homes are selling for just $64,000. That’s $350 a month in mortgage payments with 3.5% down.

At that price the company is offering new homes at prices that compete with foreclosures. The average home price in Houston fell 8% to $127,000 in January. One in three homes sold was a foreclosure.

Reader Comments


February 26, 2009 10:07 PM

would love to see pix of these small houses. we need this!


June 21, 2009 9:49 PM

Check out my little homes

Post a comment



BusinessWeek editors Chris Palmeri, Prashant Gopal and Peter Coy chronicle the highs and lows of the housing and mortgage markets on their Hot Property blog. In print and online, the Hot Property team first wrote about the potential downside of lenders pushing riskier, "option ARM" mortgages and the rise in mortgage fraud back in 2005—well ahead of many other media outlets. In 2008, Hot Property bloggers finished #1 in a ranking of the world's top 100 "most powerful property people" by the British real estate website Global edge. Hot Property was named among the 25 most influential real estate blogs of 2007 by Inman News.

BW Mall - Sponsored Links

Buy a link now!