Source:
USA TodayOut of the depths of housing's worst downturn, smaller new homes are turning into a bright spot for some home builders.
The trend toward more compact new homes is being driven partly by the fact that more customers are first-time buyers who have less to spend.
Home builders are responding by offering smaller designs with features such as high ceilings and large windows that create a spacious feel and options that let buyers personalize the model they choose.
KB Home's smaller model helped it achieve a 62% increase in year-over-year net orders in the third quarter.
The trend cuts across the industry. The median square footage of new homes has dropped 9% from a peak of 2,300 square feet in the third quarter of 2006 to 2,100 square feet in the July-September period this year, according to data from the National Association of Home Builders (NAHB).
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http://www.usatoday.com/money/economy/housing/2009-12-17-smallhomes17_ST_N.htm