Over the past few years, we’ve noticed that smaller homes are becoming increasingly popular among homebuyers. Why is that, though?
To understand this trend, first look to the younger generations of buyers, meaning Gen Z and millennials. These age groups are trending toward more urban, higher-density homes that provide greater access to amenities. Due to this, we’ve noticed a rise in planned communities with a lot of mixed-use (i.e., residential and commercial) spaces in the same area.
Older generations are looking for smaller, lower-maintenance properties as well. They’re looking for increased accessibility in their homes, ideally with fewer stairs.
These two demographics are the largest segments of the market, which is likely why you’re seeing new construction home size trending downward. In 2019, only 20% of the homes we sold in total were 2,500 square feet or greater, and 93% of new construction homes were below that size threshold. The largest percentage of the market is looking for homes between 1,500 and 2,500 square feet.
In general, I think that people are trending away from larger homes to spare themselves the effort of cleaning and maintaining all that square footage. Smaller homes prevent them from becoming house-poor and allow them to invest some of their money into experiences.
I expect to see this trend continue in our market as we advance into the new decade. If you have any questions about this trend or real estate in general, don’t hesitate to reach out to us.