Newly Built Homes in the U.S. are Getting Smaller and More Expensive
A new study reveals that newly built homes in the U.S. have gotten smaller in the past decade, while the average price per square foot for these homes has skyrocketed. LendingTree researchers analyzed the U.S. Census Bureau Characteristics of New Housing report, released in June 2025. In this analysis, they looked at the average square footage of new single-family homes sold and the average price per square foot of floor area in new single-family houses sold.
New Home Sizes Shrink in Size
By the numbers: The data found that new-home sizes have shrunk over the past decade, except in the Northeast. The average size of new single-family homes sold nationwide decreased by 11.2% from 2014 (2,707 square feet) to 2024 (2,404). The South experienced the steepest decline (13.2%), followed by the West (10.4%) and Midwest (10.0%). Only the Northeast saw a modest increase (2.1%).
Despite this, new houses sold remained spacious by historical standards, despite recent declines. The average size of new single-family homes sold rose 17.3% from 1994 (2,050 square feet) to 2024 (2,404). Home sizes peaked in 2015 at 2,724 square feet — a massive 32.9% increase from 1994.
Housing development in Queen Creek, Arizona. (Credit: Mario Tama/Getty Images)
Average Size of New Single-Family Homes Sold (2024)
But, New Homes Surge in Price
By the numbers: The study also found that the average price per square foot of a new house has surged over the past decade. From 2014 to 2024, the average price per square foot for new single-family homes sold in the U.S. rose by 73.6% from $97.25 to $168.86. The West saw the biggest jump (104.5%), followed by the South (72.8%), Northeast (67.0%) and Midwest (62.7%).
Looking further back, the average price per square foot for new single-family homes has risen 98.4% over the past 20 years, from $85.13 in 2004 to $168.86 in 2024. Over 30 years, since 1994, the rise has been 180.5%, according to the data.
Smaller Homes are Making a Comeback, but Not Everywhere
Dig deeper: In 2024, 1 in 4 new single-family homes sold were under 1,800 square feet, up significantly from 17% in 2014. Meanwhile, the share of large homes (3,000 square feet or more) dropped from 33% in 2014 to 19% in 2024.
The shift has been the most pronounced in the West. In 2014, 19% of new single-family homes in the West were under 1,800 square feet. In 2024, it was 30% – 11 points higher.
Smaller Homes, High Prices Making Homeownership Out of Reach
Big picture view: Smaller homes and higher prices are just a few of the reasons why homeownership can feel like a pipe dream for many Americans.
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LendingTree suggests shopping around the best mortgage rates, as even a fraction of a percentage point decrease in a mortgage rate can mean tens of thousands of dollars saved over the life of that loan.
They also note that “new doesn’t always mean better,” as existing homes typically cost less than new homes.
The Source: LendingTree researchers analyzed the latest U.S. Census Bureau Characteristics of New Housing report, released in June 2025, which contains data for 2024 and earlier. This analysis included: the average square footage of new single-family homes sold, the share of homes sold by square footage category (e.g., under 1,400 square feet), calculated as a percentage of total new homes sold, and the average price per square foot of floor area in new single-family houses sold. This story was reported from Los Angeles.
Conclusion
In conclusion, the trend of smaller and more expensive newly built homes in the U.S. is a concerning issue for many Americans who dream of owning a home. The data shows that while home sizes have decreased, prices have skyrocketed, making it difficult for people to afford a home. It is essential for potential homebuyers to shop around for the best mortgage rates and consider existing homes as a more affordable option.
Frequently Asked Questions (FAQs)
Q: What is the average size of new single-family homes sold in the U.S.?
A: The average size of new single-family homes sold in the U.S. is 2,404 square feet, according to the data from 2024.
Q: Which region has seen the steepest decline in new home sizes?
A: The South has experienced the steepest decline in new home sizes, with a 13.2% decrease from 2014 to 2024.
Q: How much has the average price per square foot of new single-family homes risen over the past decade?
A: The average price per square foot of new single-family homes has risen by 73.6% from $97.25 in 2014 to $168.86 in 2024.
Q: What percentage of new single-family homes sold in 2024 were under 1,800 square feet?
A: In 2024, 1 in 4 new single-family homes sold were under 1,800 square feet, which is up significantly from 17% in 2014.
Q: What is the best way to make homeownership more affordable?
A: Shopping around for the best mortgage rates and considering existing homes as a more affordable option can help make homeownership more affordable.
