New homes in the US may have gotten smaller in the past decade, but the average price per square foot has skyrocketed. Now LendingTree’s analysis of Census Bureau data on new-home sizes and prices has revealed some surprising facts.
Key Findings
- 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 to 2024, from 2,707 square feet down to 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%).
- New houses are spacious by historical standards, despite recent declines – The average size of new single-family homes sold rose 17.3% from 1994 to 2024, from 2,050 square feet up to 2,404. Home sizes peaked in 2015 at 2,724 square feet. After a brief uptick in 2022, they declined in 2023 and 2024. Regionally, Northeast new homes are the largest, averaging 2,723 square feet, while those in the Midwest are the smallest, averaging 2,281.
- Smaller homes are making a comeback…in some places – In 2024, one in four 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) dropped from 33% in 2014 to 19% in 2024. In the Midwest, 32% of new homes were under 1,800 square feet in 2024, compared with 14% in the Northeast. The South and West had 23% and 30%, respectively.
- 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%).
New-home sizes have shrunk over the past decade, except in the Northeast
The average new single-family home sold in the U.S. in 2024 was 2,404 square feet. That’s down 11.2% from 2014, when the average was 2,707.
The Midwest, South, and West all saw double-digit decreases in average new-home size, while sizes in the Northeast grew. The decrease was biggest in the South, where new-home sizes fell by 13.2%. State breakdowns were not available.
New houses are spacious by historical standards, despite recent declines
The average size of a new home is nearly 20% (17.3%) bigger than 30 years ago. In 1994, the average new single-family home sold was 2,050 square feet, compared with 2,404 in 2024.
Home sizes reached their peak in 2015 at 2,724 square feet, nearly a 33% (32.9%) increase from 1994. New-home square footage in 2024 was highest in the Northeast at 2,723, while the smallest new homes were in the Midwest at 2,281.
Smaller homes are making a comeback…in some places
In 2014, about 1 in 6 (17%) new single-family homes sold in the U.S. were under 1,800 square feet. A third (33%) were 3,000 square feet or more.
In the past decade, we’ve seen that radically shift: 25% of new single-family homes sold in 2024 were under 1,800 square feet, while just 19% were 3,000 square feet or larger.
The average price per square foot of a new house has surged over the past decade
The size of new homes might have shrunk over the past decade, but the cost per square foot hasn’t. Among new homes sold in the last 10 years, the average price per square foot has jumped a staggering 73.6%: from $97.25 to $168.86.
The West led the charge, with the average price per square foot more than doubling. That price grew 104.5%, from $109.49 in 2014 to $223.89 in 2024. That’s the largest increase by far, but the other regions saw huge growth too. Per-square-foot prices rose 72.8% in the South, 67.0% in the Northeast, and 62.7% in the Midwest.
And the further back you look, the greater growth you find. The average price per square foot for new single-family homes has risen 98.4% over the past 20 years, from $85.13 to $168.86 from 2004 to 2024. And over the past 30 years? Prices increased 180.5% from 1994 to 2014.
The post Smaller Homes, Bigger Prices: New-Home Costs on the Rise first appeared on The MortgagePoint.
