Forget your favorite tiny home hunter show for a minute—this is real life. Despite what the media tells us, homeowners and homebuilders, have only very recently begun to shrink their standards in favor of more compact confines.

In the 1990s, if you can remember back that far, about 23.2 percent of homes built were 3,000 square feet or more according to a builderonline.com article based on data taken from the Census Bureau American Housing Survey (AHS). But after the recession, square footage dropped, right? Not so much. The study, which looked at the years between 1990 and 2015, saw the number of 3,000-plus square foot homes built actually increase to 28.6 percent from 2010 to 2015. In fact, the tiny trend didn't really start picking up steam until mid-2016, when millennials and other such first-time buyers became a big enough segment to affect census numbers.

What's interesting is that the minor dent young folks and first-timers are putting in the overall evolution of expanse isn't enough yet to pull builders off course. As labor and land costs expand with our house sizes, builders are less likely to put themselves at risk, opting to operate in the higher-end housing market boasting secure returns, as opposed to taking a less calculated dip into the lower-end income pool and the smaller—dare we say ‘tiny'—household segment.

Does that mean lower-end shoppers are out of luck?

Not necessarily. Townhouse construction is on the rise, accounting for 9 percent of single-family homes from 2010-2015 (up from 6 percent during the ‘90s), and, according to the Builder article, recent data reports show townhouse construction making upwards of 12 percent of total construction in current quarters.

Will townhomes and tiny houses continue to creep into the bigger picture? Time will tell, but it's safe to say as costs continue to rise and people continue coming to hotspots like Seattle and the Puget Sound region, both builders and buyers will continue to push traditional housing boundaries and seek out less expensive, more practical means of housing.

Should be an interesting evolutionary ride.

Craving more on less? Check out Seattle's tiny home revolution.

This week, Shannon discusses the benefits of the Built Green® program with Leah Missik, Built Green program manager.

More about Built Green

By MBAKS Senior Policy Analyst Allison Butcher

Seattle Metro Area Sees Uptick in Single Family Permits in 2016

King County ended 2016 with a 7 percent increase in single-family permit activity compared to 2015 and a 7 percent decline in multifamily permits, according to U.S. Census Bureau data. Meanwhile, Snohomish County saw a 13 percent increase in single family permits and a 2 percent increase in multifamily permits at year's end. Both counties continued to have less than one month's supply of housing inventory for sale during January 2017.

The Builders' Bulletin is intended to provide a convenient way to track housing in our market and includes information from the Northwest Multiple Listing Service, U.S. Census Bureau, Office of Financial Management and the Washington State Employment Security Department.

Download this month's report: