Builders are creating smaller homes that offer more affordable and modern options to fit your budget.

Are you noticing a trend of smaller homes hitting the market? High mortgage rates and rising home prices are making it tough to find an affordable place to live. But if you don’t need a ton of space, new home communities may provide the budget-friendly options you’re looking for. Let’s explore why smaller homes are trending and why builders are focusing on them.


1. Smaller homes are cheaper to build and buy. Demand for homes with less square footage is increasing due to affordability concerns which is why builders are creating smaller spaces that can save buyers money. 

Recent data from the Census shows that the average size of a new home dropped from 2,309 square feet in the third quarter of 2022 to 2,171 square feet in the third quarter of 2024. That’s a difference of 138 square feet.

“Smaller homes are cheaper to build and more accessible for middle-income families.”

2. Smaller homes sell well. They are more accessible for middle-income families. This trend matches what buyers want right now: homes that won’t break the bank, making smaller houses a popular choice in today’s market. 


If you’re having a hard time finding something within your budget, consider newly built smaller homes. They come with modern features and require less maintenance, which can lower repair costs and monthly utility bills. 

Builders are focusing on smaller, more affordable homes, giving you a better chance to find something that fits your budget. If you’re thinking about buying soon, I’d love to help you explore what’s available in your area. Feel free to drop me a message at tim@thepiercegroup.com or give us a call at (843) 773-5481.