American homes are shrinking, but it isn't making houses any more affordable

• New-unit sizes for homes have decreased 13% nationally since 2015, according to the Census Bureau.
• Yet, the cost per square foot has markedly accelerated over the same period, data from John Burns Research and Consulting shows.
• Builders are reducing square footage by deducting extra bedrooms and bathrooms.

The average size of a home in the US is steadily decreasing. And unfortunately, prices are continuing to rise.

Census data shows that the median square footage of floor area for single-family starts in the US peaked at 2,519 during the first quarter of 2015, and has since dropped 13% to 2,191, as of the second quarter of 2023.