The Ten States Boasting the Most Expansive Homes by Square Footage

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Investigating Square Footage Trends in U.S. Homes

The typical square footage of a residence in the United States is 2,430 square feet, according to the National Association of Home Builders. However, this number fluctuates considerably from state to state, with averages spanning from 1,164 square feet to as much as 2,800 square feet.

Generally, average home sizes are larger in regions where prices are lower and smaller in pricier areas, although additional factors influence this as well. Knowing the average square footage of properties in your locality can assist you in setting pragmatic expectations for your home search and evaluating your budget, SoFi reports.

Square Footage Trends of Homes in the U.S.

The dimensions of residences in the U.S. have experienced substantial growth over the past several decades. In 1949, the average square footage for a single-family house was 909 square feet. By 2021, this figure had nearly tripled to 2,480 square feet, according to the American Home Shield’s American Home Size Index.

A key factor leading to increased home sizes was the migration of Americans to suburban areas following World War II. During this period, new highways were constructed, the demand for housing surged, and rates of homeownership climbed. Individuals relocated to larger homes with more land situated outside the densely populated urban areas.

Simultaneously, overcrowding diminished. In 1950, 15.7% of homes in the U.S. were deemed overcrowded. By 2000, that percentage had fallen to 5.7%. Presently, older houses tend to have more compact floor plans, while newer builds tend to be more spacious.

Despite this, home sizes have seen a slight decline in recent years due to increasing interest rates and rising property prices. Initially, home sizes were larger during the pandemic when interest rates reached unprecedented lows, and buyers sought homes that could serve as residences, workplaces, and schools simultaneously. Home sizes began to trend downward in 2022 and 2023 as housing became less affordable.

Nonetheless, the average square footage for new single-family houses was 2,430 square feet in the third quarter of 2023, marking a considerable rise from the 909-square foot average noted in 1949.

States with the Largest Average Home Sizes

Utah boasts the largest average home size at 2,800 square feet. Following Utah are several other states in the Mountain West region, such as Colorado, Idaho, and Wyoming. This chart presents the 10 states with the largest average home sizes in the U.S., along with their median price per square foot.

Table listing 10 states and their average home square footage and median price per square foot.
SoFi

States with the Highest Cost per Square Foot

In states with elevated costs per square foot, homes are generally smaller on average. The most compact homes can be found in Hawaii, where the median price per square foot approaches $744. The next smallest market is New York, with a median price exceeding $421 per square foot. (In New York City, the median price reaches $1,519.57 per square foot.)

That said, property prices and size do not always exhibit an inverse relationship. California features some of the priciest real estate in the nation, yet its average home size is 1,860 square feet. Besides costs per square foot, other influencing aspects of average home size include income levels and the age of the residences.

This chart showcases states with the highest median price per square foot alongside their average home sizes. If you’re seeking a purchase in a more affordable area, consider checking a list of the most affordable places to live in the U.S.

Table listing 10 states and their median price per square foot and average home square footage.
SoFi

Considerations When Purchasing a Larger Home

Opting for a larger home may seem enticing if you have a growing family and desire additional space, but it could come with drawbacks. Here are key factors to reflect on before investing in extra room:

Higher maintenance expenses

A larger home not only may involve a heftier price tag initially, but it could also incur more substantial maintenance costs. Home improvement tasks can easily run into the thousands, and prices escalate with increased space to maintain. Before choosing a larger home, consider its current state and any potential renovation expenses. Conducting research on local service costs may help estimate future expenditures.

Increased cleaning and organizing time

Larger properties require more time to clean and organize compared to smaller ones. You’ll need to acquire more furnishings and dedicate additional time to upkeep. Should you decide to hire cleaning services, the cost of each visit will rise if there are more areas that require attention.

Often located further from city center

Properties in and surrounding cities tend to be smaller, while houses with more square footage and land are usually situated outside the urban core. This may be less desirable if you prefer proximity to dining establishments, entertainment venues, and other city attractions. It can also become a disadvantage if you are employed in the city, resulting in a longer and costlier daily commute.

A larger environmental footprint

A larger residence demands more heating in winter and air conditioning in the summer. This results in higher energy bills and a greater consumption of resources, impacting the environment more significantly. Some newer constructions may mitigate this footprint by incorporating energy-efficient features.

What Square Footage Can You Afford?

Prior to embarking on your home search and mortgage endeavors, it’s important to contemplate how much square footage fits within your financial means. Even if you receive preapproval for a mortgage amount, you might prefer a smaller loan with more manageable monthly payments to avoid straining your finances. Many first-time homebuyers opt for a more modest starter home before eventually moving to a larger property. One method to assess how much home you can afford is by applying the 28/36 rule.

The 28/36 Rule

The 28/36 rule serves as a guideline for estimating the price of a house you can afford. It proposes that you spend no more than 28% of your gross monthly income on housing costs, and no more than 36% on total debt, which includes housing expenses, car loans, and student loans.

For instance, if your gross monthly income is $6,000, according to this guideline, you’d aim to keep housing costs at $1,680 monthly or lower. If you have additional debts, your combined expenses for debts and housing should not exceed $2,160.

Advantages of Purchasing a Smaller Home

Choosing a smaller residence can yield several benefits, such as:

  • Reduced mortgage: A smaller home may entail a lower cost, allowing for a smaller down payment and mortgage.
  • Lower monthly bills: With reduced square footage, your monthly expenses for utilities will decrease, and you’ll be liable for a lesser property tax burden.
  • Simpler and less expensive upkeep: Smaller homes are often easier to clean and maintain, and you won’t spend as much on furnishings and decorations.
  • More budget flexibility for other objectives: Saving money on housing means more funds available for other pursuits, like home renovations, travel, future investments, and dining experiences.

Conclusion

The typical home square footage in the U.S. exceeds 2,000 square feet, yet sizes have recently experienced a slight decline due to rising costs and interest rates. Home sizes also differ significantly among states, with the average square footage in some states more than double that of others.

Before investing in a larger home, assess your budget thoroughly. Utilize the 28/36 rule to gauge what home size is financially viable, and take your broader financial aspirations into account when determining how much to allocate to housing each month. With strategic planning, you can secure a home size that fits your needs without placing undue strain on your budget.

FAQ

Are basements included in measurements of home square footage?

Inclusions of basements in home square footage calculations depend on the state you reside in and the basement’s condition. If counted, it usually must meet specific criteria for being livable, such as having a proper entrance and exit that leads outside.

What is the ideal square footage for a family of four?

While needs vary by individual, a guideline for determining suitable square footage based on family size is 600 to 700 square feet for each person. Thus, a family of four would ideally require a home with 2,400 to 2,800 square feet.

Is the average house size in the U.S. on the rise or decline?

Over the last 75 years, the average house size in the U.S. has seen a substantial increase from 909 square feet in 1949 to 2,430 square feet in 2023. Nonetheless, the last couple of years revealed a slight decline in home sizes, primarily due to increasing interest rates and declining affordability.

This article was generated by SoFi and assessed and disseminated by Stacker.

By Rebecca Safier

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