The Size of New US Single-Family Homes Continues to Shrink

The latest US Census Bureau data on Starts and Completions by Purpose and Design, with additional analysis provided by the National Association of Home Builders (NAHB), reveals that the median single-family square floor area came in at 2,156 ft² in 2023Q4. That’s the lowest level since the beginning of 2010. The average (mean) square footage for new single-family homes registered at 2,374 ft².

This is in contrast with the impact of the COVID-19 crisis when people needed more residential space, as they used their homes for more purposes including work, the NAHB explained. Home size increased in 2021 as interest rates reached historic lows. However, as interest rates increased in 2022 and 2023, and housing affordability worsened, the demand for larger home sizes has trended lower.

The NAHB notes that since the Great Recession, the average size of a new single-family home (on a one-year moving average basis) is now just 1.4% higher at 2,419 ft², while the median size is just under 5% higher at 2,201 ft².

The NAHB also points out that home sizes rose from 2009 to 2015 as entry-level new construction lost market share. Home sizes 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.