Priced out of housing? Here are some reasons why. We did it to ourselves. Larger homes-smaller families

Complaining about home prices is a lot like complaining about your electric bill when the electric rates haven’t changed in six years – you are paying more because you are using more electricity.

The size of American homes has generally increased over the last 50 years, though there has been a recent slight decline.

Here’s a breakdown of the trend:

• Significant Growth: From 1970 to around 2015, the average and median size of new single-family homes in the U.S. grew substantially. For example, in 1970, the average new home was about 1,500 square feet, and by 2015, the median size peaked at approximately 2,467 square feet.
• Reasons for Growth: This growth was driven by factors like rising prosperity, the expansion of suburban areas, and a desire for more space and amenities (e.g., more bedrooms, bathrooms, home offices, larger kitchens).
• Recent Shrinkage: More recently, since peaking around 2015, the median size of new homes has shown a slight downward trend. In 2023, the median size was around 2,233 square feet, and projections for 2025 suggest a continued shrinking trend, with the average size of a single-family home around 2,200 square feet.
• Factors in Recent Decline: This recent shift is attributed to changing demographics, smaller household sizes, increasing construction costs, and affordability concerns, leading builders to reduce square footage to make homes more accessible.

But it’s not only size. The amenities have changed too.

Technology and Appliances:

• Smart Technology: Today’s homes are increasingly equipped with smart devices, from smart refrigerators and quiet dishwashers to smart speakers and streaming options.
• Advanced Appliances: While microwaves were introduced in the 1970s, modern kitchens boast a wider array of sophisticated appliances.
• Central Air Conditioning: While present in some homes in the 1970s, central air conditioning is far more common and expected in American homes today.
• Improved Electrical Systems: Older homes often had 60-amp service, which is insufficient for the demands of modern devices. Contemporary homes typically have 200-amp service, supporting a multitude of electronics.

Comfort and Luxury:

• Spa-like Bathrooms: Bathrooms have evolved from basic necessities to luxurious, spa-like retreats with features like walk-in showers, double vanities, heated floors, and even smart toilets.
• Dedicated Entertainment/Recreation Areas: Media rooms, home gyms, and larger backyard patios with features like pools or sport courts are more prevalent now.
• Energy Efficiency: There’s a greater emphasis on energy-efficient home features today, including improved insulation, double-pane windows, solar panels, and Energy Star certified appliances.
• Garages: Garages are much more common now, with almost 8 out of 10 homes built between 2005 and 2009 having them, compared to less than two-thirds in earlier decades.

In essence, the American home has evolved to prioritize comfort, convenience, and technology, offering a wider range of amenities than 50 years ago.

At the same time the number of children per family has decreased. In the 1970s, 40% of families reported having four or more children. Today, 41% of families have only two children, and only 14% have four or more. The number of families with a single child doubled from 11% in 1976 to 22% in 2015. The U.S. fertility rate hit a historic low of 1.6 children per woman in 2023, well below the 2.1 replacement level needed for population stability.