After years of saving, a couple recently bought their first home, opting for a smaller space to stay within budget. Like many others, they had a list of features they wanted but had to scale back their expectations after seeing the prices.

America is known for its love of "bigger is better"—whether it’s cars, portions, or homes. But that’s starting to change.

For decades, the size of new single-family homes in the U.S. steadily increased. In 1973, the median size was 1,525 square feet, growing to a peak of 2,467 square feet in 2015. However, with rising home costs and the waning appeal of McMansions, builders are now focusing on more affordable, smaller homes. By 2023, the median size of new single-family homes dropped to 2,233 square feet, with features like formal dining rooms and extra "bonus" spaces becoming less common.

This couple settled on a 920-square-foot home, creatively using the basement as their primary bedroom to maximize space. This trend is becoming more common as affordability challenges push buyers towards smaller, more efficient homes.

An industry expert noted that while the demand for larger homes was historically driven by consumer preferences, affordability is now leading to a shift towards smaller homes.

This trend is supported by a recent study from the National Association of Homebuilders, which found that the average desired home size is now around 2,067 square feet—smaller than last year’s typical new home.

Their home, built nearly a century ago, reflects a style that was once common in many U.S. suburbs but is now harder to find. In the post-war era, "Levittown" developments popularized the idea of smaller suburban homes, often fitting several 750- to 800-square-foot houses on a single acre. As Americans' wealth grew in the mid-20th century, so did the size of their homes. But today, the trend is reversing as buyers focus on affordability and efficient living spaces.

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