Home Sizes: Demand vs. Supply
The share of new single-family homes built in the 1,600-3,000 square-foot range track closely with the share of buyers who want homes of that size, according to recent surveys from NAHB and the U.S. Census Bureau.
The surveys show that 21% of buyers want homes with 1,600 to 1,999 square feet, and 22% of new single-family homes started in 2023 have that much floor space.
In the next tier up, 38% of buyers want homes with 2,000 to 2,999 square feet, and 40% of new single-family homes fall within that size range.
Results on the square footage buyers want in their next home were published in the 2024 edition of What Home Buyers Really Want, based on a representative sample of 3,008 recent and prospective home buyers in 2023. The size of homes started comes from NAHB tabulation of the recently released 2023 data file from the Census Bureau’s Survey of Construction.
Outside of the 1,600-3,000 square-foot range, the match between what buyers want and what builders provide is not as close. While 26% of buyers want homes under 1,600 square feet, only 16% of single-family homes started in 2023 were that small. And while 22% of new homes have at least 3,000 square feet, only 14% of buyers are looking for homes that large.
NAHB Senior Economist Paul Emrath provides more analysis in this Eye on Housing blog post.
Latest from NAHBNow
Safety
Apr 15, 2025
Follow Best Practices in Distracted Driving Awareness MonthApril is Distracted Driving Awareness Month, and NAHB encourages members to emphasize the importance of safe driving practices to, from, and around the jobsite.
Membership
Apr 15, 2025
Don Dabbert Jr. Seeks Certification as a Candidate for 2027 NAHB Third Vice ChairmanThe NAHB Nominations Committee announces that Don Dabbert, Jr., CEO/President, Dabbert Custom Homes in Fargo, North Dakota, has submitted his Letter of Intent to seek certification as a candidate for NAHB 2027 Third Vice Chairman.
Latest Economic News
Economics
Apr 16, 2025
Builder Confidence Levels Indicate Slow Start for Spring Housing SeasonGrowing economic uncertainty stemming from tariff concerns and elevated building material costs kept builder sentiment in negative territory in April, despite a modest bump in confidence likely due to a slight retreat in mortgage interest rates in recent weeks.
Economics
Apr 14, 2025
Where Do Builders and Remodelers Buy Building Products?The most common sources for products used in home building and remodeling are specialty retailers, lumber yards, and wholesale distributors, according to two recent NAHB surveys. The surveys include one of single-family homebuilders in the October 2024 NAHB/Wells Fargo Housing Market Index (HMI) and one of remodelers in the Q3 2024 NAHB/Westlake Royal Remodeling Market Index (RMI). Both surveys asked respondents where they purchase building products, regardless of who ultimately purchases them (themselves or subcontractors).
Economics
Apr 11, 2025
Building Material Prices Continue to Grow at Slower PacePrices for inputs to new residential construction—excluding capital investment, labor, and imports—were up 0.6% in March according to the most recent Producer Price Index (PPI) report published by the U.S. Bureau of Labor Statistics.