U.S. homes are getting smaller

The median size of a newly built single-family home in the first quarter of 2024 was 2,140 square feet, according to the U.S. Census Bureau. During the same time period in 2023, it was 2,256. 

That shrinking trend tracks with data collected by the NAHB and the U.S. Census Bureau's Survey of Construction. It also dovetails with predictions architectural designers are making, which includes:

• Homes will have fewer hallways, which typically decreases the number of interior walls.
• Entry-level and move-down designs will diverge, with entry-level homes making even more tradeoffs that the move-down buyer would not accept.
• Most homes will have a flex space, which creates more nooks and niches in the home.

The big question is, according to NAHB: How is the U.S. housing stock accommodating these shifting preferences? An what, exactly, are buyers looking for? 

For starters, the data shows that very few people want something under 1,200 square feet or over 4,000 square feet. According to NAHB, "The surveys show that 21 percent of buyers want homes with 1,600 to 1,999 square feet, and 22 percent of new single-family homes started in 2023 have that much floor space."

The next size up seems to be a real sweet spot. Per NAHB, "38% of buyers want homes with 2,000 to 2,999 square feet, and 40% of new single-family homes fall within that size range."