The square footage of new homes is not only dictated by the ebb and flow of a healthy economy; it is also a reflection of changes in the culture. And today's new homes are bigger than ever.

For the first time in recent history, the first-time homebuyer is paying more than $100,000 for a new home. Not only have land and building costs increased, but the demands of consumers have also risen, resulting in a larger home with more living space. Not only are first-time homebuyers demanding more space, but many new homes are being built to appeal to the baby-boomer move-up buyer, the most affluent segment of the population to afford a new home.

Over the last 25 years, the average home has grown from 1,660 square feet to 2,120 square feet and climbing. Only 25 percent of homes built two generations ago had three or more bedrooms, and less than 20 percent had two and a half baths or more. Today's homebuyer can expect one-third of the new-home market to contain homes with four or more bedrooms, and half with more than two and a half baths.

What has changed the market so radically? Three major factors are influencing the size of the homes we are building and buying: the economy, the workplace, and demographics.

John Tuccillo, president of John Tuccillo & Associates and economic advisor to the National Association of Realtors, says, "I have lived in Washington many years, and I have never seen a better economic climate. Congress and the Clinton administration are working hard to reduce the national debt and retain stability in our current economic indicators. It is the first time in decades we have enjoyed so many favorable economic indicators at one time -- low inflation, low unemployment, higher average salaries, low interest rates -- and there is no reason to believe that it won't continue for a while longer."

Twenty-five years ago, change happened more slowly. "Rates would stay the same for a long time," says loan officer Bob McClemons with Homeside Lending. "Now, rates change daily, and loan rates can be negotiated with discount points. There are also more loan products available, enabling many people to buy more house than they would have been able to a generation ago." Consumers can look for nontraditional ways to negotiate the purchase of a home, which can not only save money, but enable them to buy more house as well. The Internet will play a significant role with online loan approval and discounted Realtor services.

"Consumers are monitoring change much more than they used to because conditions change so rapidly today. They are also better-educated and prepared to make major purchases such as a home," Tuccillo adds.

Two cultural demographics are contributing to the popularity of larger houses: the "Brady Bunch" effect and the aging of the baby-boomer, now known as the "Sandwich" generation.

With half of all U.S. marriages ending in divorce, and more than half of those partners remarrying within three years, the blended family is becoming more the demographic norm. These "Brady Bunch" families are in need of larger houses to accommodate more children and segregate those who cannot "share" a room. Although the population is not having more children than 1.5 per family, the blended family averages 2.5 children, resulting in the need for a larger home.

The baby-boomers are now in their peak earning years, but are sandwiched between raising children at home and caring for aging parents, who are living longer and in better health, not in need of nursing homes until much later in life. Many of the new larger homes are designed with downstairs "mother-in-law" suites or bedrooms with closet and a full bath, which are separated from the master suite for privacy.

As employers search for ways to reduce overhead and maximize production, and the price of technology falls to affordable levels, the home office has emerged in popularity. During the early 1990s the library/study served as the home office, but new construction is answering the need for a new working environment, wired to support multiple phone/fax/Internet lines and computers. The home office is emerging as a separate amenity from the rich-looking, wood-toned and shelved library/study.

The results of a recent survey of top national builders indicate that the most important new feature of new homes today is flex space, living space which is designed to be utilized at the discretion of the new homeowner. This flexible space is often called the bonus room and can be outfitted in a variety of ways including nursery, guest bedroom, office/study/homework space, playroom, and exercise room, depending on the individual family's preferences.

Flex space creates more options which appeal to a broader range of homebuyers. Although the average family lives in a home a little more than four years before moving, new homes are outfitted for longevity, so as not to lose marketibility regardless of the age of the next buyer.

"Square footage has become the criteria that homebuyers are most interested in, but it is not the square footage that really matters. It is how the space is used," says luxury builder Kolos Kileghy of Exorg Custom Builders. "I believe the next challenge for builders will be how they use the space available. Right now there is a lot of waste, and it would be easy to make every inch of living space pay for itself in terms of utility."