09/17/2026
What Smaller U.S. Homes Could Mean for Buyers
I've seen a noticeable shift in the types of homes being built and sold across the U.S. over the past decade—and it’s something we’re experiencing even here in the Black Hills. The average size of newly sold single-family homes has dropped from 2,700 to 2,400 square feet, while the price per square foot has jumped by about 72%. In 2025, one in four new single-family homes nationwide measured under 1,800 square feet, compared to about one in six a decade ago. Meanwhile, larger homes (3,000+ sq ft) have become a bit rarer—now just one in five new builds, down from one in three. Builders are leaning into smaller footprints to help keep homes within reach, especially with mortgage rates hovering around 6% to 7% and the ongoing rise in land, labor, and material costs.
For many first-time and budget-conscious buyers, these smaller homes can make homeownership more attainable by lowering down payments and monthly payments—even as the higher price per square foot keeps overall costs elevated. As someone who’s spent decades in this community, I know these trends can feel overwhelming. My approach is always grounded in honest guidance and a clear understanding of your goals, so you can make informed choices in a changing market.
