Average Home Sizes Hit 20-Year Low: Here's the Reason Behind the Trend

Average Home Size and Affordability: The average size of newly built homes in the U.S. has decreased to 2,404 square feet, an 11% drop from a decade ago, as buyers face higher mortgage rates and reduced affordability, with only 28% of homes on the market being affordable to median-income households.

Builder Response and Market Trends: In response to the affordability crisis, builders are focusing on smaller, more budget-friendly homes, while overall home sales have declined to their lowest levels since 1995, with economists suggesting that any relief from high mortgage rates may be gradual.