Average New U.S. Home Size Falls to 2,175 Square Feet Since 2019 Peak

The average new home in the U.S. measured 2,175 square feet as of the latest NewHomeSource report, down 5.6% from the February 2019 peak, Fortune reported. That decline equals roughly 125 square feet, or the size of a typical home office or spare bedroom.

More than 80% of the top 50 U.S. housing markets recorded smaller average new-home sizes between 2019 and 2025. Charlotte and Raleigh each posted declines of about 10%, or 250 square feet. Only nine of the 50 markets showed gains, with New York recording the largest increase at 11%.

Median single-family home prices rose nearly 48% between 2019 and 2024, according to Harvard’s Joint Center for Housing Studies. New homes priced at $350,000 or lower fell from 42% of all new construction to about 21%. Ali Wolf, chief economist at Zonda and NewHomeSource, said builders face pressure from higher material costs, labor shortages, and slower sales.

“Size is the most flexible variable in the homebuying equation right now,” she stated in the report. Wolf added that some builders now offer free appliances, design credits, or even a swimming pool to attract buyers. Wolf noted that buyers purchasing with a 5% mortgage-rate buydown may find it difficult to move later if rates remain elevated.