{"id":12273,"date":"2010-08-27T09:00:21","date_gmt":"2010-08-27T16:00:21","guid":{"rendered":"http:\/\/seattlebubble.com\/blog\/?p=12273"},"modified":"2010-08-27T08:15:37","modified_gmt":"2010-08-27T15:15:37","slug":"is-new-construction-getting-cheaper-or-just-smaller","status":"publish","type":"post","link":"https:\/\/seattlebubble.com\/blog\/2010\/08\/27\/is-new-construction-getting-cheaper-or-just-smaller\/","title":{"rendered":"Is New Construction Getting Cheaper or Just Smaller?"},"content":{"rendered":"

Yesterday in response to the story about the vanishing new construction price premium, reader “nwerner” commented<\/a>:<\/p>\n

You should also do your analysis on a per SF basis if you haven’t already. The square footage of new construction has dropped considerably, in the range of 20 to 25 percent. Your second comment, re: lower lot prices and construction costs, is accurate but it doesn\u2019t tell the whole story.<\/p><\/blockquote>\n

Great idea. Here’s a chart of the median square footage of both re-sales and new construction over the same time period as yesterday’s chart:<\/p>\n

\"New<\/a><\/p>\n

There’s definitely some shrinkage going on in the size of new construction homes sold, but a decline from 2,650 to 2,500 doesn’t really go very far toward explaining the dramatic price drop-off we saw yesterday.<\/p>\n

It is interesting to note that over the last year, new construction homes sold have been an average of 550 square feet larger than re-sales, which certainly would explain why you would expect them to be more expensive.<\/p>\n

Here’s a plot of the price per square foot of re-sales and new construction:<\/p>\n

\"New<\/a><\/p>\n

Whoa. Now that is some serious drop-off. In April 2009, new construction homes sold for a median price of $199 per square foot. As of July, that price is down to $155 per square foot—a 22% decline in 15 months.<\/p>\n

While the new homes being sold today may be getting slightly smaller, they’re definitely getting cheaper a lot faster than re-sales.<\/p>\n","protected":false},"excerpt":{"rendered":"

Yesterday in response to the story about the vanishing new construction price premium, reader “nwerner” commented: You should also do your analysis on a per SF basis if you haven’t already. The square footage of new construction has dropped considerably, in the range of 20 to 25 percent. Your second comment, re: lower lot prices…<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[8,616],"tags":[123,699],"coauthors":[],"class_list":["post-12273","post","type-post","status-publish","format-standard","hentry","category-stats","category-counties","tag-construction","tag-new-construction"],"yoast_head":"\nIs New Construction Getting Cheaper or Just Smaller? \u2022 Seattle Bubble<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/seattlebubble.com\/blog\/2010\/08\/27\/is-new-construction-getting-cheaper-or-just-smaller\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"Is New Construction Getting Cheaper or Just Smaller? \u2022 Seattle Bubble\" \/>\n<meta name=\"twitter:description\" content=\"Yesterday in response to the story about the vanishing new construction price premium, reader “nwerner” commented: You should also do your analysis on a per SF basis if you haven’t already. The square footage of new construction has dropped considerably, in the range of 20 to 25 percent. 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