Average New US Home Size Drops 11.6% Since 2015

The average size of new single-family homes sold in the United States decreased by 11.6% between 2015 and 2025, falling from 2,724 to 2,409 square feet. An analysis of U.S. Census Bureau data by LendingTree indicates that rising costs for land, labor, and materials, combined with higher mortgage rates, have constrained buyer affordability and driven the shift toward smaller footprints.

While the total price of smaller homes may be lower, the average price per square foot increased by 71.9% over the decade. By 2025, one in four new single-family homes sold measured less than 1,800 square feet. Regional trends varied, with the South seeing the sharpest decline at 13.4%, followed by the Midwest and the West.

The Northeast remained the only outlier, recording a 1.1% increase in average home size. Analysts attribute this to a builder preference for high-end projects in the region because extreme construction costs make smaller projects less viable. Matt Schulz noted that while smaller homes can be more accessible for buyers, they do not automatically guarantee affordability.