Some people dream of owning large, expansive homes with plenty of room to spread out. But more recently, there’s been a push toward smaller home construction and design.
During the second quarter of 2024, a single-family home under construction had an average of 2,375 square feet, according to data from the U.S. Census Bureau. That’s down from an average of 2,455 square feet during the second quarter of 2023 and 2,535 square feet in the second quarter of 2022.
If you’re in the market for a home, you may want to consider a smaller one for the benefits involved. With the right strategy, you can make a smaller space work for you.
[Is Your House Too Big for You?]
What’s Driving the Smaller Home Trend?
There are a number of reasons why homes are getting smaller. And a big one is cost.
In July 2024, the median existing-home sale price was $422,600, according to the National Association of Realtors. That was a 4.2% increase from a year prior, when the median existing home sold for $405,600. In August, the median existing-home sales price rose 3.1% from August 2023 to $416,700, the 14th consecutive month of year-over-year price increases.
The combination of higher home prices and mortgage rates has strained a lot of people’s budgets. And that’s something builders recognize. To this end, they may be leaning toward smaller spaces because the cost of construction is lower. That, in turn, can lead to savings for buyers.
According to Katherine Cohen, global associate creative director for rug design firm FLOR, cost is definitely a big reason why homes are trending smaller.
“There’s a growing number of people looking to be first-time homebuyers, which is driving demand for budget-friendly options. Smaller-sized homes are oftentimes a better fit for these buyers because they may have a smaller budget, are looking for less space and are just tired of renting,” she says.
Meanwhile, Pete Evering, business development manager at Utopia Management-San Diego, attributes the small home trend to not just affordability, but changing homebuyer priorities.
“Home living in general has undergone a sort of streamlining in the past decade,” he says. “Entertaining in the home has been in steady decline as younger families tend to socialize less than their predecessors. This reduces the need for entertaining spaces that add to the square footage requirements of new homebuyers.”
Another reason smaller homes are growing more popular is that an increasing number of people are choosing to age in place. AARP reports that 77% of Americans aged 50 and older want to remain in their homes for the long term. Smaller homes lend to this, as they commonly require less maintenance — something that may be a challenge for seniors. And homes that are only a single story may be more suitable for older people who might struggle with mobility issues.
Finally, a growing number of buyers are seeking out smaller homes for the convenience factor. Zander Diamont, co-founder at home design company Minimal Living Concepts in Scottsdale, Arizona, says homeowners “are choosing to live in a smaller home to simplify their life.”
“In some cases,” he explains, “homeowners just don’t need the extra maintenance involved with a large home and want something smaller. … a home that provides beautiful simplicity where no space goes unused.”
[Raised Patios, Rooftop Lounges and More: How Homeowners Are Transforming Small Yards In Big Ways]
What Are the Benefits of a Smaller Home?
A smaller home can translate to more cost savings in terms of everything from purchase price to property taxes to insurance. Smaller homes also tend to cost less to maintain, heat and cool.
In addition, a smaller home can mean freeing up valuable time. If you’re a busy person with a full-time job (and perhaps a side hustle, since those are more common these days), the last thing you want is to spend hours each week dealing with upkeep. The less space you have, the less you have to do.
Plus, living in a smaller space might force you to adopt a more minimalist lifestyle. That could positively impact your finances on a whole.
[How to Make a Small Room Look Bigger]
How Can Sellers Overcome the Drawbacks of a Smaller Home?
The disadvantage of owning a smaller home is pretty obvious — less space. But there are ways to overcome that and enjoy life with less square footage.
As Cohen says, “It’s been well reported recently that homes are continuing to shrink. This can present challenges to homeowners as they are having to do more with less space. Because of this, we’re seeing that flexible spaces and modular furniture are more important than ever to create a multiuse environment that changes with homeowner needs.”
Choosing the right furniture can make a world of a difference in a smaller space. You may, for example, opt to forgo a large, clunky living room couch in favor of a loveseat and a couple of corner chairs.
It can also help to buy furniture that’s multifunctional. Some coffee tables, for example, offer storage underneath so you don’t need separate shelving.
The right design choices can help, too. If you’re designing a kitchen, a peninsula can double as your workspace and table with the addition of stools or chairs that slide right underneath. This makes it so you don’t need to find the space for a separate table and chairs.
Furthermore, when you’re dealing with less space, it helps to be creative. That could mean utilizing wall space for storage rather than cramming large bookcases or cabinets into a smaller room.
That said, one of the best ways to overcome a smaller space is to keep it clean and clutter-free. And also, don’t overload your home with decor. The less busy your home looks, the more spacious an impression it’s apt to give.
More from U.S. News
How to Decorate Small Spaces for the Holidays
How to Decorate with Sage Green for an Earthy Home Aesthetic
Are Homes Getting Smaller? originally appeared on usnews.com
