US Single-Family Home Size Shrinks as Housing Affordability Deteriorates

The recently released US Census Bureau data from its Quarterly Starts and Completion by Purpose and Design, with further analysis provided by the National Association of Home Builders (NAHB), reveal that the median single-family square floor area was 2,221 square feet in Q3, close to the lowest reading since the end of 2010. The average (mean) square footage for new single-family homes registered at 2,430 square feet in Q3.

The NAHB notes that since Great Recession lows (and on a one-year moving average basis), the average size of a new single-family home is now more than 2% higher at 2,442 square feet, while the median size is more than 5% higher at 2,216 square feet.

According to NAHB analysis, 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. Now, after a brief increase during the post-COVID building boom, home sizes are trending lower and will likely do so as housing affordability remains constrained.