US Single-Family Home Size Continues to Shrink in Q1

A closer look at the recently released US Census Bureau Quarterly Starts and Completions by Purpose and Design report, with additional analysis provided by the National Association of Home Builders (NAHB), reveals that the median single-family floor area came in at 2,140 square feet in Q1—the lowest reading since the second half of 2009. Average (mean) square footage for a new single-family home registered at 2,343 square feet.

One of the results of the COVID-19 pandemic was that home size increased in 2021 as interest rates reached historic lows and homebuyers sought additional space for in home offices, etc. However, as interest rates increased in 2022 and 2023, and housing affordability worsened, the demand for home size has trended lower.

NAHB analysis shows that since Great Recession lows (and on a one-year moving average basis), the average size of a new single-family home is now just 1.2% higher at 2,387 square feet, while the median size is about 4.5% higher at 2,170 square feet.

Home size rose from 2009 to 2015 as entry-level new construction lost market share, NAHB said. Home size declined between 2016 and 2020 as more starter homes were developed. After a brief increase during the post-COVID building boom, home size is trending lower and will likely continue to do so as housing affordability remains constrained.