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Homebuilder Sentiment: Change in Home Specs Quarter-Over-Quarter

Principia introduced the Homebuilder Sentiment Dashboard in Q4 2024 to track perceptions of homebuilders on key business issues over time. This month, we’re taking a closer look at two sentiment measures surrounding new home construction.

Homebuilder sentiment dashboard line chart, Q4 2024 to Q1 2025 (n=300): 56% say their average home is smaller, up from 45%; 76% build to HERS standards more often.
Share of homebuilders agreeing that HERS building is increasing and homes are smaller, Q4 2024 vs. Q1 2025 (n=300). Source: Principia Voice of Customer Surveys, 2025.

The frequency of building to HERS standards is increasing.

Though this sentiment has remained constant over the last two quarters, a majority of homebuilders state their frequency of building homes to HERS (Home Energy Rating System) standards is increasing.

Builders report building smaller homes.

Perhaps it is too early to claim a trend, more homebuilders report they are building smaller homes (in square footage) compared to 12 months ago. We will continue to monitor these sentiments over time.