Shrinkflation, an economic trend in the United States, is when manufacturers reduce the size of products rather than raise their prices. This trend has found its way into the housing market, with the average square footage of a house decreasing to offset rising construction costs.
As prospective homebuyers, it is important to keep this in mind to make informed decisions about where to buy a home and how to get the best value for your money. We’ve analyzed data about the cost per square foot of housing vs. storage units and found that self-storage is generally a more affordable way to increase storage space. Keep reading to learn more about the current state of the U.S. housing market.
Key Takeaways
- The average U.S. house size is 1,800 square feet and has decreased by 6% since 2016.
- West Virginia, Mississippi, and Kansas have the lowest cost per square footage in the U.S., while Hawaii and California have the highest.
- The number of three-bedroom homes sold has decreased by 8% since 2010.
- Single-story home purchases increased by 5 percentage points between 2010 and 2023, while two-story homes decreased by 6 percentage points.
- You could use self-storage for 17 years before the cumulative costs equaled the price of adding storage space to your home.
What Is the Average Square Footage of a House?
The current average square footage for homes in the United States is 1,800 square feet, down 7% from 2016. Home sizes fluctuate over time due to changing factors, including the cost of building supplies or land, housing affordability, homeowner priorities, and environmental impacts.
Fluctuating factors also influence the types of homes Americans can afford and their priorities for housing. Inflation and rising interest rates are two possible reasons families downsize their homes. For many homeowners, it is important to strike the right balance between space and cost. More on this later.
What States Have the Lowest Price Per Square Foot?
Given the escalating housing costs and the trend towards smaller homes, it’s crucial to maximize the value of your investment. The top five states with the best price per square foot are:
- West Virginia
- Mississippi
- Kansas
- Louisiana
- Indiana
These states are located across different regions of the U.S. and offer housing opportunities with comparable square footage to the national average of 1,800 square feet. If increased storage space is a major concern, consider affordable alternative storage options like storage units. Storage units can be rented for a fraction of the cost per square foot of residential real estate.
Choosing the right storage unit size is key. A 5×5 storage unit is similar to a hall closet or half-bathroom, a 5×10 is comparable to a large walk-in closet, and a 10×10 provides roughly the storage space of a standard bedroom.
The chart below illustrates how long you can rent a storage unit in each state before the cumulative cost would match the expense of expanding your home’s square footage. On average, the cost of purchasing a home with additional square footage for storage adds $12,438 to a home’s purchase price.
To better understand the factors influencing these costs, this table also displays the median home price, median square footage, and the most popular storage unit size in each state.
For example, based on the purchase price of a median-sized home in Connecticut, you’d pay $13,900 to buy the equivalent of a 5×10 self-storage unit. That does not include mortgage interest and other fees. It would take more than 16 years of renting a 5×10 unit to match that amount.
| State | Median Home Sq. Ft. | Median Price per Sq. Ft. | Most Common Storage Unit Size | Storage Unit Price Per Sq. Ft. | Savings Potential
($ per Sq. Ft.) |
Breakeven Point (Years) |
| Northeast | ||||||
| Connecticut | 1774 | $278 | 5×10 | $1.42 | $277 | 16.29 |
| Maine | 1675 | $272 | 5×10 | $1.42 | $271 | 15.91 |
| Massachusetts | 1800 | $413 | 5×10 | $1.71 | $411 | 20.18 |
| New Hampshire | 1882 | $303 | 5×10 | $1.29 | $302 | 19.64 |
| New York | 1590 | $380 | 5×10 | $1.84 | $378 | 17.19 |
| New Jersey | 1655 | $300 | 5×10 | $1.54 | $298 | 16.29 |
| Pennsylvania | 1652 | $183 | 5×10 | $1.24 | $182 | 12.29 |
| Rhode Island | 1787 | $312 | 5×5 | $1.54 | $310 | 16.87 |
| Vermont | 2009 | $256 | 5×10 | $1.13 | $255 | 18.91 |
| Midwest | ||||||
| Illinois | 1671 | $175 | 5×10 | $1.10 | $174 | 13.31 |
| Indiana | 1852 | $152 | 5×10 | $1.01 | $151 | 12.51 |
| Iowa | 1592 | $170 | 5×10 | $1.11 | $169 | 12.82 |
| Kansas | 1938 | $148 | 5×10 | $1.04 | $147 | 11.82 |
| Michigan | 1568 | $169 | 5×10 | $1.12 | $168 | 12.56 |
| Minnesota | 1920 | $197 | 5×10 | $1.29 | $196 | 12.70 |
| Missouri | 1754 | $166 | 5×10 | $1.07 | $165 | 12.89 |
| Nebraska | 2034 | $169 | 5×10 | $0.94 | $168 | 14.99 |
| North Dakota | 2113 | $163 | 5×10 | $1.08 | $162 | 12.52 |
| Ohio | 1662 | $157 | 5×10 | $0.98 | $156 | 13.29 |
| South Dakota | 1827 | $205 | 5×10 | $0.79 | $204 | 21.65 |
| Wisconsin | 1758 | $202 | 10×10 | $0.80 | $201 | 21.07 |
| South | ||||||
| Alabama | 1904 | $163 | 10×10 | $0.65 | $162 | 20.88 |
| Arkansas | 1852 | $154 | 5×10 | $0.72 | $153 | 17.73 |
| Delaware | 2048 | $235 | 5×10 | $1.44 | $234 | 13.63 |
| Florida | 1612 | 268 | 5×10 | $1.21 | $266.79 | 18.48 |
| Georgia | 2046 | $189 | 10×10 | $0.82 | $188 | 19.11 |
| Kentucky | 1797 | $167 | 5×10 | $1.05 | $166 | 13.30 |
| Louisiana | 1828 | $152 | 10×10 | $0.77 | $151 | 16.37 |
| Maryland | 1778 | 229 | 5×10 | $1.41 | $227.59 | 13.58 |
| Mississippi | 1955 | $146 | 5×10 | $0.85 | $145 | 14.38 |
| North Carolina | 1903 | $215 | 5×10 | $1.04 | $214 | 17.19 |
| South Carolina | 1784 | $200 | 5×10 | $1.13 | $199 | 14.79 |
| Tennessee | 1952 | $229 | 5×10 | $0.99 | $228 | 19.36 |
| Texas | 1967 | $184 | 5×10 | $1.16 | $183 | 13.21 |
| Virginia | 1896 | $220 | 5×10 | $1.37 | $219 | 13.34 |
| West Virginia | 1750 | $138 | 5×10 | $0.97 | $137 | 11.83 |
| West | ||||||
| Alaska | 1705 | $244 | 5×5 | $2.01 | $242 | 10.10 |
| Arizona | 1881 | $266 | 5×10 | $0.94 | $265 | 23.47 |
| California | 1738 | $443 | 5×10 | $1.54 | $441 | 23.91 |
| Colorado | 1996 | $284 | 5×10 | $1.47 | $283 | 16.11 |
| Hawaii | 1119 | $726 | 5×5 | $1.68 | $724 | 35.98 |
| Idaho | 2122 | $280 | 5×10 | $0.97 | $279 | 24.02 |
| Montana | 2118 | $310 | 10×10 | $0.59 | $309 | 44.14 |
| Nevada | 1786 | $274 | 5×5 | $1.11 | $273 | 20.64 |
| New Mexico | 1928 | $204 | 5×10 | $1.02 | $203 | 16.65 |
| Oklahoma | 1830 | $159 | 5×10 | $0.88 | $158 | 14.99 |
| Oregon | 1857 | $307 | 5×10 | $1.64 | $305 | 15.63 |
| Utah | 2427 | $255 | 10×10 | $0.82 | $254 | 25.89 |
| Washington | 1884 | $328 | 5×10 | $1.54 | $326 | 17.75 |
| Wyoming | 2201 | $206 | 5×10 | $0.88 | $205 | 19.44 |
Sources: Realtor.com, SpareFoot
How Home Trends Have Changed Over Time
Homeowner needs and construction costs are constantly changing, impacting home design trends such as the size of newly built homes. While home sizes reached their peak in 2019, they have steadily decreased since then.
This table shows how the percentage of homes sold with specific features has changed between 2010 and 2023.
| Trend | 2010 | 2023 |
| 3 Bedrooms Homes | 52% | 44% (-8) |
| 2.5 Bathrooms Homes | 37% | 32% (-5) |
| Single-Story Homes | 40% | 45% (+5) |
| HOA | 64% | 81% (+17) |
| Gas Heating System | 91% | 84% (-7) |
| Air Conditioning | 91% | 99% (+8) |
In 2025, the key focus for home design is on smaller, sustainable, and efficient homes with integrated smart technology. American homeowners can make the most of their smaller spaces by frequently decluttering their homes and using creative storage solutions. Self-storage is an economical solution to increase your storage space since home storage expansion costs the same as 17 years of storage unit rental fees.
Why Are Average Home Sizes Decreasing?
The changing sizes of homes are tied to the complex intersection of evolving economic and demographic factors. From a construction perspective, supply chain disruptions and higher material prices have significantly increased building costs since 2020. Builders counter rising costs by decreasing home sizes, ensuring affordability for buyers.
Inflation and higher mortgages could be other economic factors impacting home buyers, causing them to look for smaller properties to lower costs and reduce their environmental impact. This trend aligns with the tiny home movement and shows a shift in priorities for American homebuyers to maximize space in smaller living situations.
What Home Size Is Right for You?
To find the right home size, compare your current budget, lifestyle, and needs with future plans like expanding your family or starting a business. The amount of space a person needs to live comfortably varies, but a general guideline is to set aside 400 to 600 square feet of living space per person.
Once you have an idea of the home size you need, think about how you plan to use the space. Do you need an extra room for an office, workshop, or guest room? If storage is a major concern, there are ways to increase storage space in your home besides choosing a larger property.
| Pros and Cons of Larger Homes | |
| Pros | Cons |
|
|
A good starting point is to look at how your home is organized. Are you using the right size furniture, are there items you don’t need, and did you add storage solutions like cabinets or wall shelves? If rooms still feel cramped, try decluttering to maximize the space.
Even after decluttering, you may still need storage space for seasonal items, sports equipment, or extra furniture. Compared to increasing residential property square footage, self-storage is a cost-effective long-term solution, saving homebuyers an average of $229 per square foot.
Maximize Your Space With SpareFoot
The average square footage of a house helps you determine the range you should look for in your home search. While larger houses have benefits like increased storage space, higher square footage will raise your monthly expenses. A more cost-effective solution is to use self-storage for extra storage space.
If you need help figuring out the right size self-storage unit, SpareFoot has you covered.
Methodology
This state study was completed using data sourced in January 2025. We gathered proprietary data from SpareFoot.com on storage unit costs and popular sizes by state and publicly available data from Realtor.com, United States Census Bureau, and Federal Reserve Bank of Saint Louis on the average square footage and price of homes by state, and insights into the changing design trends for homes. To calculate the breakeven point (years), we compared the cost of adding storage to your home with the yearly rent for a similar-sized storage unit. This shows how many years it takes for renting to equal the cost.
Sources:
SpareFoot
SpareFoot is the largest marketplace for storage, making it simpler to move and store your stuff. Our website lets you compare the most storage options nationwide and pick the best solution for your needs, whether it's traditional self-storage or full-service storage.
