Monday Market Update: Buyers Want Smaller Homes
Less is what buyers want more of – see the stats from the NAHB!
Spring has sprung and so has some emerging data from the National Association of Home Builders (NAHB). Every year, the NAHB publishes the results of a study titled ‘What Home Buyers Really Want.’ The study is technically designed to inform builders, developers, manufacturers and architects with data on what buyers are seeking in their homes and communities. The results are also an insightful indication of where the market is at with regards to demand, affordability and lifestyle.
The 2024 edition of ‘What Home Buyers Really Want’ revealed that buyers want smaller homes than they did 20 years ago. Here is an overview:
- In 2003, the typical homebuyer wanted 2,260 sq. ft.
- In 2023, the typical buyer wanted 2,067 sq. ft.
- From 2003-2012, most buyers wanted homes sized from 2,200-2,300 sq. ft.
- In 2015, the range dropped to 2,000 and 2,100 sq. ft.
- Similarly, the US Census Bureau reports that the size of new homes being built has been shrinking for almost a decade. There was a home size increase in 2021 amidst pandemic-induced needs for space.
- The median size of a newly constructed home in 2023 was 2,179. With an average home size of 2,411 sq. ft.
- The average home size peaked in 2015 at 2,689 sq. ft. and has been declining ever since.
The bottom line is that buyers want smaller homes and builders are adjusting their strategies to meet the demand. Possible reasons include: a heightened demand for starter homes as inventory constraints continue, affordability as smaller homes cost and less and fewer buyers are moving up due to their own cost concerns, less maintenance as busy lifestyles warrant less time for home projects and a growing interest in more minimalistic space and fewer possessions.
Resource Used: NAHB Releases What Home Buyers Really Want, Study Shows Buyers Want Smaller Homes
Do you want your next home to be bigger or smaller than your current one? Why do you think smaller homes are in demand? We’d love to hear your thoughts!
All my best,
Bobbi
Bobbi Decker
DRE#00607999
Broker Associate, Bobbi Decker & Associates
650.346.5352 cell
650.577.3127 efax
www.bobbidecker.com
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