When it comes to new homes, bigger is again better. The median size of new homes built for sale peaked in 2007 at 2,295 square feet, then fell to 2,159 two years later, after the housing crisis hit. But the appetite for ever-larger homes has returned: In 2012, new homes reached a new peak of 2,384 square feet and, according to the National Association of Home Builders, some 41 percent of new homes had four or more bedrooms, up from 34 percent in 2009.
"The housing market is being driven by the move-up buyer, the luxury buyer," said Brad Hunter, chief economist and director of consulting at Metrostudy. "And those who have strong incomes, secure jobs, their stock portfolio is doing well -- they are able to buy whatever they want. And what they are buying is larger houses."
A broad range of options that add or expand rooms and can even change a home's footprint. Media rooms, sunrooms and in-law suites can be added to standard models. Some customers are even opting for a so-called dirty kitchen, a separate galley off the main kitchen that is used to prep food. It keeps the dirty work of cooking hidden so it doesn't sully the increasingly large kitchens that have morphed into granite-slathered family gathering spots.
For Ms. Sleep, a mudroom was crucial. She and her husband compete in triathlons, and they wanted a place to keep their gear and provide space for their children and grandchildren to stow coats, boots and more. The room includes a washer and dryer under a granite countertop with cabinets above, along with a half bath and a utility sink. "It's awesome," she said.
Affluent buyers are drawn to new homes in part because the market for existing homes is so competitive, said Stephen Kim, a Barclays analyst. Inventories of existing homes for sale remain low, and buyers are less interested in large homes in far-flung developments -- the McMansions of the exurbs that were emblematic of the boom and bust. Those homes have struggled to regain their value, according to Lawrence Yun, chief economist at the National Association of Realtors, and affluent buyers want established suburban communities that are closer to job centers and have good schools. And builders are finally starting to put up more houses: Housing starts rose 18 percent in 2013.
When Dr. Jonathan Cohen, a physician in Orange County, Calif., began looking for a home with his wife and young son, they were outbid on one after another. Frustrated, he visited a new Toll Brothers development in Yorba Linda, among the country's wealthiest communities, where he later bought a five-bedroom, 4,600-square-foot home with a double-height foyer.
Dr. Cohen, 35, and his wife, Esther, also a physician, saved for two years to buy it. Aware of how fickle the Southern California market can be, they tried to add options that would raise the home's value. They upgraded the hardwood floors and added solid wood doors and the most expensive exterior the company offered, a manufactured stone. In total, they spent about $80,000 upgrading the home, which ended up costing about $1.2 million. It's within a reasonable commute to work and in a great school district, Dr. Cohen said.
