New homes are getting smaller with fewer hallways and Tetris-like designs.
Home prices continue to rise, but new homes continue to shrink—and architects say they’ll keep getting smaller, according to a July report. report of John Burns Research & Consulting (JBREC). Last year, about a quarter of new homes were downsized to cut costs, JBREC said, but new home prices rose 2.5% in 2023, peaking at nearly $441,000 in August, the U.S. Census Bureau said. data In turn, that has led economists and other housing experts to warn of the death of starter housing.
“To build an affordable home under $300,000, you’re going to have to build smaller homes or homes in higher population densities,” said Ali Wolf, chief economist at Zonda. LuckAlena Botros in one interview last year.
According to JBREC, architects and other home designers are now four times more likely to plan even smaller homes than larger ones. They do this by designing homes with fewer hallways and more flexible spaces. A popular tactic among architects to cut construction costs is to “eliminate hallways.”
“All that Tetris playing in the ’90s has finally paid off. Instead of shrinking rooms to reduce the overall size of the home, a popular tactic among our architects is to eliminate unnecessary circulation spaces,” JBREC wrote in its U.S. Housing Architecture and Design Survey report. “We’re essentially Tetrising functional rooms together, avoiding wasted square footage in nonfunctional areas like hallways.”
What is flex space and why are more and more new homes having it?
While new homes may not have the extra bedroom you want for an office or guest bedroom, flex spaces can still serve that purpose, just on a smaller scale. While flex spaces are becoming more popular—they were included in 53% of projects designed last year, according to JBREC—they’re evolving.
“It’s no longer limited to a generic, bedroom-sized room that can double as a dining room or home office,” says JBREC. “Flexible spaces have become a hidden gem, especially in smaller homes.”
Many homebuyers use these smaller spaces for things like “pocket offices” or as nursery spaces. JBREC says to expect homes to have more useful “nooks and crannies” as architects and builders find new ways to maximize space.
“Flexible spaces are something that have become much more popular in tiny home construction,” says Seamus Nally, CEO of property management software company TurboTenant. Luck“The popularity of working from home is a big reason for this, as is the reduced need for guest bedrooms. While I’m sure most people would love to have a guest bedroom, the truth is that many homebuyers simply don’t see it as a necessity because it makes already expensive homes even more expensive.”
Dave Copenhaver, senior partner at BSB Design, told JBREC that his firm tries to incorporate flexible space into every home, regardless of size. Even in their smallest build-to-suit homes, rooms that are 5 feet by 5 feet or 6 feet by 6 feet can be used as a home office or even a pet room, he said.
While smaller homes — or what we often call “starter homes” — are popular with first-time homebuyers and current homeowners looking to downsize, don’t expect millennials and baby boomers to want or be able to afford the same new homes, JBREC says.
“For years, homes designed for millennials have finally caught on with baby boomers,” JBREC reports. “Today, we’re paring back to the bare essentials.” But essentials look different for the two generations. Millennials should expect to face trade-offs in features and finishes, including smaller kitchens and outdoor spaces. But baby boomers won’t “be willing to make such trade-offs,” JBREC says, and will expect extra storage even in these smaller designs.
Tiny House Revolution
As mentioned earlier, not all new construction homes are technically smaller, but are designed to include more flexible spaces to feel like a larger home. But tiny houses, accessory dwelling units, tree houses, and other compact homes are also becoming more popular—especially as home prices and construction costs continue to rise.
Tiny homes are defined by the International Housing Code as having a floor area of 400 square feet or less. By comparison, the average starter home in the United States is about 750 square feet to 1,250 square feet, according to Zillow.
“This solution is a little cheaper and allows for creativity in design, material choice and energy savings,” said Lionel Scharly, an architect and strategic building consultant at Real estatetold Luck“Those small structures can also be built faster and sometimes without the need for permits.”
However, smaller homes and lower prices could also affect builders’ profits.
“The hard part is convincing builders to do it because it cuts into their profit margins and they need to be able to source good materials,” Scharly said. However, architects can advocate for builders to do these new builds, he added.
