The typical new home in the U.S. is shrinking. Here's what that means for buyers

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The size of typical new homes in the U.S. has been declining for years, according to industry research. Here's how downsizing can help affordability.

The size of homes newly under construction in 2023 dropped to an average 2,411 square feet, or a median of 2,179 square feet, the smallest size in 13 years, according to the National Association of Home Builders.is smaller

In the first quarter of 2024, a single family home newly under construction had a median 2,140 square feet of floor space,That is down from a median 2,256 square feet in the first quarter of 2023. The new figures make for the, when the average home size peaked at 2,689 square feet, NAHB found. The only year home sizes jumped in that timespan was in 2021, because the pandemic lock-down spurred a demand for space to work or study from home, according to the analysis.

In some cases, buyers might simply desire a compact home. In the U.S., nearly 30% of recent homebuyers are single, said Jessica Lautz, deputy chief economist at the National Association of Realtors.About 28% of polled buyers recently purchased a home between the sizes of 1,501 to 2,000 square feet; while 26%, purchased a home between 2,001 to 2,500 square feet,to the NAR's 2024 Home Buyers and Sellers Generational Trends Report.

 

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