The Future. With home prices skyrocketing and mortgage rates at a 20-year high, a new housing trend is sweeping the nation: just making them smaller. In a perfect world, that would mean the homes are a lot cheaper, but that’s turning out to not be the case. With entry-level home buyers relegated to smaller pads for the time being, furniture makers and smart-home device developers may need to pivot to make tiny living feel less tight.
Honey, I shrunk the home
Not only are homes getting more expensive, but they’re also being made smaller.
- John Burns Research and Consulting reports home prices nationwide have skyrocketed 72% over the past three years, with the number of homes priced under $400,000 declining rapidly.
- Meanwhile, listing platform Livabl by Zonda found the average size of new construction homes has decreased by 10%, with even bigger decreases in popular metros like Seattle, Charlotte, and San Antonio.
- How’s the shrinking shaking out? Builders are getting rid of dining areas, separate living rooms, additional bedrooms, and bathtubs… while opting to make shared spaces a little larger.
Those shrinking homes are meant to help curb costs (good for builders) and lower prices (good for consumers), but the US Census Bureau found customers are still paying more per square foot.
In other words, we’re getting less bang for our buck. No wonder some are just opting to live in actual tiny homes.