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CHALLENGES AND OPPORTUNITIES <br />States sold in 2018 (most recent statistics) dropped to its smallest size since the Census Bu- <br />reau has been tracking lot sizes. Nationwide median lot sizes have dropped below 8,600 <br />square feet (0.20 acres), down about 8% since 2010. Historically lot sizes in the Midwest <br />have been about 15% larger than nationwide trends, however, Midwest lot sizes are also <br />down about 10% since 2010. <br />7,500 <br />Median Lot Size of Detached SF Holmes - USA & Midwest <br />cn c G D D D D D D D D co D 1 ,,,1, N <br />9 a H 9 9 <br />Lot sizes have decreased in part due to increasing raw land, lot prices, and rising regulatory <br />and infrastructure costs (i.e. curb and gutter, streets, etc.). As a result, builders and devel- <br />opers have reduced lot sizes in an effort to increase density and absorb higher land devel- <br />opment costs across more units. Many new single-family subdivisions have lot widths of <br />about 65 to 75 feet, down from the standard width of 80 to 90 feet prior to the Great Re- <br />cession. Because many local governments have large minimum lot size requirements, the <br />cost of housing continues to rise as developers and buyers may be required to purchase a <br />lot this is larger than they prefer. <br />• Mortgage Rates. Mortgage rates play a crucial part in housing affordability. Lower mort- <br />gage rates result in a lower monthly mortgage payment and buyers receiving more home <br />for their dollar. Rising interest rates often require homebuyers to raise their down payment <br />in order to maintain the same housing costs. Mortgage rates have remained at historic lows <br />over the past several years coming out of the Great Recession. Although rates ticked -up in <br />2018 and early 2019, concerns about global growth have pushed long-term interest rates <br />lower as mortgage rates have fallen to their lowest levels since 2017. The Federal Reserve <br />has indicated that rates will be stable for the next year and has hinted at a possible rate cut. <br />A rate cut would further reduce lending costs and increase affordability. A significant in- <br />crease in rates (+1% or more; over 5% in the short term — although unlikely in next year) <br />MAXFIELD RESEARCH AND CONSULTING 157 <br />