New US Homes Continue to Be Built on Historically Small Lots
Shrinking Lots: Trend Levels Off as Smaller Lots Remain the Norm
The US Census Bureau’s latest Survey of Construction, with analysis from the National Association of Home Builders (NAHB), shows that the share of new homes built on smaller lots remained near record highs in 2025.
Nearly two-thirds of new single-family detached homes sold in 2025 occupied lots under 9,000 square feet, or one-fifth of an acre or less. About 38% were built on lots under 7,000 square feet, or less than one-sixth of an acre. Both shares were only slightly below the record highs set during the previous two years.
When the Census Bureau began tracking the series in 1999, about 46% of new for-sale single-family detached homes occupied lots under 9,000 square feet. NAHB said the shift toward smaller lots accelerated over the past 15 years amid persistent lot shortages and builders’ efforts to improve affordability.
The median lot size increased slightly to 8,543 square feet in 2025 from 8,506 square feet in 2024. Despite the increase, the typical lot remained below one-fifth of an acre and only modestly above the record-low median of 8,177 square feet recorded in 2019.
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