Homes At Their Smallest Since 2009

Homes are smaller than they have been in 15 years, as the pandemic rush to expand comes to an end.

The National Association of Home Builders' analysis of Census Quarterly Stats and Completions by Purpose and Design indicated that home size is now trending lower after a brief increase during the post-COVID boom in residential construction. 

“An expected impact of the virus crisis was a need for more residential space, as people use homes for more purposes including work. Home size correspondingly increased in 2021 as interest rates reached historic lows,” said Dr. Robert Dietz, chief economist and SVP for economics and housing policy at the NAHB. “However, as interest rates increased in 2022 and 2023, and housing affordability worsened, the demand for home size has trended lower.”

In the first quarter of 2024, the median square foot floor area on a single-family home was 2,140 sq. ft., the lowest reading since the second half of 2009. Average (mean) square footage for new single-family homes registered at 2,343 square feet. 

“Home size rose from 2009 to 2015 as entry-level new construction lost market share,” Dietz said. “Home size declined between 2016 and 2020 as more starter homes were developed.”

The average size of a new single-family home is now just 1.2% higher at 2,387 sq. ft., than it was since record lows in 2007-2009 during the Great Recession.