Press Release
Small Homes
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New Home Size: Smaller, Bigger, Smaller Again

ORLANDO, Fla. – Following a brief uptick in new home sizes in 2021, the average size of a new home dropped slightly – 45 square feet – from 2,525 square feet to 2,480 square feet in 2022, according to the National Association of Home Builders (NAHB).

The percentage of new homes with 3-plus full bathrooms and 3-plus car garages dipped to 33% and 17%, respectively. However, the percentage of homes with 4-plus bedrooms rose slightly to 48%, in part because of the flexibility in use that bedrooms can provide.

NAHB expects home size and amenities to continue growing in 2023 before dropping again in 2024. Smaller home sizes in 2022 were due in part to the escalation of home prices in 2022 and builders scaling back to try to meet demand, NAHB research officials explained.

Amenities no longer necessarily translate directly to number of rooms or types of features within the home either – it can also be simply having a space within the home that provides respite.

Builders and designers have adjusted in response to new buyers’ preference with things like walking paths and other outdoor spaces connected to the home. They’re also incorporating natural materials and other examples of design harmonious with nature. Builders say they saw a big jump in demand for exterior amenities, such as patios, decks and porches, in 2023, along with home office-space, which appeared on the list of buyers’ most-wanted features for the first time this year.

Demand was also on the rise for more flexible and better-equipped spaces to meet buyers’ changing needs. A majority of both first-time and repeat buyers currently prefer an open-kitchen family room. This kind of open space can be reconfigured to provide additional rooms or higher-end components.

Other home features that resonate with both first-time and repeat home buyers include:

  • Laundry rooms
  • Exterior lighting
  • Ceiling fans
  • Patios
  • Walk-in pantries
  • Hardwood flooring on the main level

Housing affordability remains a struggle, which home buyers recognize. Nine out of 10 buyers (91%) are willing to compromise to afford a home. The top three areas are:

  • A smaller house
  • Simpler/more basic interiors
  • Fewer exterior amenities

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