09/24/2026
What Smaller U.S. Homes Could Mean for Buyers
Over the past decade, we've seen notable changes in the size and affordability of new single-family homes across the U.S. The average new home has gone from 2,700 to 2,400 square feet, even as the price per square foot surged by about 72%. By 2025, one in four new single-family homes sold measured under 1,800 square feet—an increase from roughly one in six a decade ago. Meanwhile, larger homes (3,000 square feet or more) have become less common, dropping from about one in three to just one in five. Builders are focusing on smaller floorplans to manage rising costs for land, labor, and materials, which helps keep purchase prices more accessible, especially with mortgage rates hovering around 6-7%. For buyers watching their budgets or entering the market for the first time, these smaller homes may help with more manageable down payments and monthly expenses. However, the higher price per square foot is a reminder that affordability remains a challenge. In San Diego County, where I focus on communities like La Mesa, San Carlos, Del Cerro, Alpine, and Jamul, these trends are shaping the options available for many local buyers.
