As people use homes for more purposes including work, and with the aftermath of an unexpected virus crisis, a need for more residential space has spiked amongst homebuyers. Home size increased in 2021 as interest rates reached historic lows. But with the increase in rates in 2022, and housing affordability worsening, the demand for home size has trended lower.
According to Eye On Housing, according to first quarter 2023 data from the Census Quarterly Starts and Completions by Purpose and Design and NAHB analysis, median single-family square floor area registered at 2,261 square feet. Average (mean) square footage for new single-family homes stood at 2,469 square feet.
Since Great Recession lows (and on a one-year moving average basis), the average size of a new single-family home is now 4% higher at 2,486 square feet, while the median size is 7% higher at 2,262 square feet.
Home size rose from 2009 to 2015 as entry-level new construction lost market share. 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 do so as housing affordability remains constrained.