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    Real Estate
    Friday, April 26, 2024

    New housing has significant regional differences, NAHB analysis finds

    While walking through your neighborhood, you might think that the homes around you could be found in plenty of other places in the country. Census data shows that there are significant regional differences in home styles and prices, however.

    The study was conducted by the National Association of Home Builders' Economics Group. The regional differences were derived from the United States Census Bureau's Survey of Construction from 2013. This survey collects information from the builders or owners of new houses.

    "This recent analysis really illustrates the many different types of homes built throughout the country," said Kevin Kelly, NAHB chairman and a home builder and developer from Wilmington, Delaware. "It is fascinating to see how newly built homes can vary significantly not only in design features and building materials, but also in terms of lot size, home prices and financing methods used, simply based on where a home is built."

    In the New England and Middle Atlantic states, fewer than 60 percent of new single family homes were built for sale. These regions had higher shares of new homes supervised by contractors or owners, including 37 percent in New England and 36 percent in the Middle Atlantic. States in the Mountain and Pacific regions had more new homes built for sale, including 83 percent in the Mountain region and 80 percent in the Pacific region.

    The East South Central states had the largest number of new homes started for rent, with almost 10 percent of new residences being built for this purpose. The national average for new rental housing is four percent.

    COST AND FINANCING

    New homes in New England were the most expensive ones on the market, with a median sales price of about $400,000. New homes in the Pacific were the next most expensive with a median price of $355,000.

    The most economical new homes were in the South. The median sale price in the East South Central states was $221,000 while the median price in the West South Central states was $223,000.

    Contractor-built homes in the Pacific and New England regions were the most expensive on the market. This kind of home averaged $145 per square foot in the Pacific states and $143 per square foot in the New England states. The national median contract price was $93 per square foot.

    Conventional loans were used to purchase about two-thirds of the new single family homes sold in 2013. Mortgages insured by the Federal Housing Administration accounted for 13 percent of all financing, while loans guaranteed by the Department of Veterans Affairs accounted for six percent.

    Cash purchases made up about 11 percent of sales of new homes. The remaining four percent of sales were financed by a variety of sources including individual loans, state or local government mortgage-backed bonds, Habitat for Humanity, and Rural Housing Service.

    Conventional loans were more prevalent in the East North Central and Middle Atlantic regions, accounting for 80 percent of the sales there. Fewer than 60 percent of the sales in the South Central and Mountain regions used conventional loans, while fewer than 64 percent of the Pacific and South Atlantic regions used them.

    These regions also had a higher share of other financing. FHA-insured loans were used for 20 percent of new home sales in the West South Central region and 14 percent of new home sales in the Mountain region. VA-guaranteed loans made up more than nine percent of the financing in the South Atlantic and almost 8 percent of financing in the Mountain region.

    New England had the highest share of cash purchases at 22 percent, about twice the national average.

    SIZE

    Despite having the highest median sales price, new homes in New England were among the smallest in the country. The national median size for new homes in 2013 was 2,469 square feet, while the median size of New England's new homes was 2,240 square feet.

    The largest new homes were in the South Atlantic region, with a median size of 2,596 square feet.

    New England had the largest median lot size in the nation at 22,863 square feet. The national median is 8,712 square feet.

    The larger size also made the lots the most expensive of all the regions. While the national median lot value for homes started in 2013 was $40,000, the median lot value in New England was $100,000.

    In the East South Central region, lot sizes were the second largest in the country at 14,520 square feet. However, the lots were also the most economical at a median lot value of $30,000.

    Lots were smallest in the Pacific, with a median size of 6,153 square feet. They were also the third most expensive with a median value of $51,000, giving them the highest per-acre cost.

    HOUSING STYLE

    Multi-story homes were popular, with 58 percent of new single family homes started in 2013 having at least two floors. In New England, more than 85 percent of new homes had at least two stories while almost 80 percent of the new homes in the Middle Atlantic states had multiple stories.

    Single story homes were most popular in the Midwest. About half of the homes in the East North Central region had multiple stories while just under 39 percent of the new homes in the West North Central region had at least two stories.

    Basements were more common in the Northeast, while slabs were more prevalent in the South. The NAHB says colder regions have codes requiring deep foundations, and that New England led the nation in basements with 87 percent of homes started in 2013 including this feature. Basements were also popular in the West North Central region (84 percent), East North Central region (71 percent) and Middle Atlantic region (63 percent).

    Nationally, only about 30 percent of new single family homes had a full or partial basement. Fifty-four percent were built on slabs and 15 percent included a crawl space. The remaining one percent were built on stilts or pilings.

    Slabs were most popular in the South Atlantic region, with 66 percent of new homes built on this foundation. The Pacific states built 55 percent of new homes on slabs and 40 percent on crawl spaces. Other regions had a more diverse mix of foundations, with the Mountain region reporting 52 percent with basements, 36 percent with slabs, and 11 percent with crawl spaces.

    Only eight percent of new single family homes started in 2013 had individual wells, but 42 percent of new homes in New England had this feature. Wells were also popular in new homes in the East North Central region (27 percent) and Middle Atlantic region (18 percent).

    Similarly, more than half of the new homes in New England had a private septic system while the national average was only 15 percent.

    Vinyl was the most popular siding for new houses, with almost 31 percent of new homes started in 2013 featuring this material. Brick was the second most popular at 24 percent, followed by stucco (22 percent), fiber cement (about 17 percent), and wood products (5 percent). The remainder of the homes used siding such as aluminum, stone, concrete, and steel.

    About 80 percent of the new Middle Atlantic homes used vinyl siding, while 71 percent of new homes in New England used this material. Brick was more popular in the southern states, featured in 68 percent of new homes in the West South Central states and 63 percent of the East South Central states. Stucco was most popular in the western states, used in 58 percent of Mountain region homes and 49 percent of Pacific homes.

    Cement has gotten more popular as a siding material. Its usage in new home construction increased from 10 percent in 2005 to 17 percent in 2010. The use of fiber cement was most prevalent in new homes in the Pacific states, with 43 percent of new homes using it.

    The use of a secondary material for exterior walls was also popular for new homes in 2013. More than two-thirds of the homes started in the Midwestern regions used mixed materials, while 61 percent of new homes in the Mountain states used this method. Mixed materials were not a popular option in the Northeast regions, with 92 percent of new homes featuring only one exterior wall material.

    OUTDOOR FEATURES

    The most popular outdoor amenity in new homes started in 2013 was a porch, with 63 percent of homes including this feature. Fifty-five percent of new homes featured patios, while only 22 percent included a deck.

    Porches were especially popular in the East South Central states, with 91 percent including one. The East North Central region was the next area most likely to include a porch, with 71 percent of new homes featuring one.

    Patios were most popular in the West South Central states, with 78 percent of new homes featuring one. They were also popular in the western states, showing up in 66 percent of Mountain homes and 63 percent of Pacific homes.

    Despite the declining popularity of decks, this feature remains popular in New England and was included on 63 percent of new homes. West North Central states were the next most likely to feature a deck at 44 percent. Decks were especially rare in the West South Central region, with only five percent of new homes adding one.

    In the Middle Atlantic states, about one in three new homes did not include any outdoor features. Nationally, only 15 percent of new homes did not include a porch, patio, or deck.

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