Lessons from the RREAR Pt. II

We pick up here where we left off, with the second part of our new series: Lessons from the RREAR, where we dig deeper into the data found in our Annual Residential Real Estate Activity Report.

Today's subject: Square Footage.

Despite a consistent decline in the number of residents per household each year thanks to an aging population and relatively lower birth rates, the average square footage of Twin Cities homes continued its inexorable rise upwards in 2007. As newer, larger homes are added to the pipeline and existing homes are refurbished and expanded over time, the overall size of our homes gradually increases, seemingly into infinity.

This is either fantastic or horrible news, depending on whether or not you're generally in favor of second amusement rooms in the basement for antique billiard tables and pinball machines.

Entirely-too-subtle jabs at suburban consumerism aside, what this all means is that every year we seem to have more square footage per person than ever before. So relax and truly enjoy that extra beanbag chair or Barcalounger with no shame.

Below are the Top 20 areas in the Twin Cities for Average Finished Square Footage for closed sales in 2007. This is where you can really sterch out into that 7th bedroom. Not coincidentally, some of these are also the higher-priced communities in the region:

Code	Area	Avg. Sq. Footage
605	Sunfish Lake	5,120
368	Hennepin-Northwest	2,929
398	Victoria	2,927
381	Lake Minnetonka	2,733
604	Mendota/Lilydale/Mendota Heights	2,595
392	Eden Prairie	2,569
396	Chanhassen	2,541
707	Ham Lake	2,519
642	Prior Lake	2,413
385	Edina	2,389
626	Lakeville	2,318
367	Hennepin-North	2,317
762	Andover	2,301
727	Stillwater/Bayport	2,288
365	Maple Grove/Osseo	2,283
644	Savage	2,244
374	Plymouth	2,234
726	Woodbury	2,216
721	Lakeland/Afton/Denmark	2,206
706	North Central Suburban	2,198

And here are the Bottom 20 areas. Not surprisingly, you'll notice regions here that either a) have a high preponderance of condominiums and/or b) have a relatively older housing stock and/or c) are located in the two center cities or first-ring suburbs.

Code	Area	Avg. Sq. Footage
741	SP – Downtown/Capital Heights	1,089
302	Mpls – Central	1,307
308	Mpls – Powderhorn	1,310
742	SP – Central	1,322
310	Mpls – University	1,333
307	Mpls – Phillips	1,347
301	Mpls – Camden	1,351
303	Mpls – Longfellow	1,360
738	SP – Home Croft/W 7Th	1,377
306	Mpls – Northeast	1,386
746	SP – St. Anthony/Midway	1,421
716	SP – Hillcrest/Hazel Park/Daytons Bluff	1,430
728	SP – Riverview/Cherokee	1,442
386	Hopkins	1,457
379	Bloomington-East	1,462
305	Mpls – North	1,469
714	SP – Phalen	1,504
304	Mpls – Nokomis	1,514
600	West St. Paul	1,516

For a look at the geographic boundaries of these MLS areas, visit here. And stay tuned in the weeks ahead for more Lessons from the RREAR.