Trading up or down is not unusual, and many first-time buyers agree that their first house is not going to be their last. The average new single-family home grew from 1,645 square feet in 1975 to 2,095 square feet in 1995. The most popular home built in 1995 had three bedrooms and two bathrooms, according to the National Association of Realtors. It would be difficult to find a home built today without central air conditioning, a two-car garage, and one or more fireplaces. By contrast, fewer than half of homes built in 1975 had central air.
People buying new four-bedroom homes obviously have more money than the average homebuyer.
They also tend to have bigger households, which helps explains why they want so much space. But not all homebuyers are created equal. The Concord Group of Newport Beach, California, identifies 14 consumer segments and recognizes that the needs and wants of each one has implications on the configuration and design of homes. Childfree singles under age 35 are limited by their financial situation. These people tend to be active and mobile.