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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 5x5 storage unit is similar to a hall closet or half-bathroom, a 5x10 is comparable to a large walk-in closet, and a 10x10 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 $13,900 to buy the equivalent of a 5x10 self-storage unit. That does not include mortgage interest and other fees. It would take more than 16 years of renting a 5x10 unit to match that amount. State Median Home Sq. Ft. Median Price per Sq. Ft. Most Common Storage Unit Size Storage Unit Price Per Sq. Ft. Savings Potential ($ per Sq. Ft.) Breakeven Point (Years) Northeast Connecticut 1774 $278 5x10 $1.42 $277 16.29 Maine 1675 $272 5x10 $1.42 $271 15.91 Massachusetts 1800 $413 5x10 $1.71 $411 20.18 New Hampshire 1882 $303 5x10 $1.29 $302 19.64 New York 1590 $380 5x10 $1.84 $378 17.19 New Jersey 1655 $300 5x10 $1.54 $298 16.29 Pennsylvania 1652 $183 5x10 $1.24 $182 12.29 Rhode Island 1787 $312 5x5 $1.54 $310 16.87 Vermont 2009 $256 5x10 $1.13 $255 18.91 Midwest Illinois 1671 $175 5x10 $1.10 $174 13.31 Indiana 1852 $152 5x10 $1.01 $151 12.51 Iowa 1592 $170 5x10 $1.11 $169 12.82 Kansas 1938 $148 5x10 $1.04 $147 11.82 Michigan 1568 $169 5x10 $1.12 $168 12.56 Minnesota 1920 $197 5x10 $1.29 $196 12.70 Missouri 1754 $166 5x10 $1.07 $165 12.89 Nebraska 2034 $169 5x10 $0.94 $168 14.99 North Dakota 2113 $163 5x10 $1.08 $162 12.52 Ohio 1662 $157 5x10 $0.98 $156 13.29 South Dakota 1827 $205 5x10 $0.79 $204 21.65 Wisconsin 1758 $202 10x10 $0.80 $201 21.07 South Alabama 1904 $163 10x10 $0.65 $162 20.88 Arkansas 1852 $154 5x10 $0.72 $153 17.73 Delaware 2048 $235 5x10 $1.44 $234 13.63 Florida 1612 268 5x10 $1.21 $266.79 18.48 Georgia 2046 $189 10x10 $0.82 $188 19.11 Kentucky 1797 $167 5x10 $1.05 $166 13.30 Louisiana 1828 $152 10x10 $0.77 $151 16.37 Maryland 1778 229 5x10 $1.41 $227.59 13.58 Mississippi 1955 $146 5x10 $0.85 $145 14.38 North Carolina 1903 $215 5x10 $1.04 $214 17.19 South Carolina 1784 $200 5x10 $1.13 $199 14.79 Tennessee 1952 $229 5x10 $0.99 $228 19.36 Texas 1967 $184 5x10 $1.16 $183 13.21 Virginia 1896 $220 5x10 $1.37 $219 13.34 West Virginia 1750 $138 5x10 $0.97 $137 11.83 West Alaska 1705 $244 5x5 $2.01 $242 10.10 Arizona 1881 $266 5x10 $0.94 $265 23.47 California 1738 $443 5x10 $1.54 $441 23.91 Colorado 1996 $284 5x10 $1.47 $283 16.11 Hawaii 1119 $726 5x5 $1.68 $724 35.98 Idaho 2122 $280 5x10 $0.97 $279 24.02 Montana 2118 $310 10x10 $0.59 $309 44.14 Nevada 1786 $274 5x5 $1.11 $273 20.64 New Mexico 1928 $204 5x10 $1.02 $203 16.65 Oklahoma 1830 $159 5x10 $0.88 $158 14.99 Oregon 1857 $307 5x10 $1.64 $305 15.63 Utah 2427 $255 10x10 $0.82 $254 25.89 Washington 1884 $328 5x10 $1.54 $326 17.75 Wyoming 2201 $206 5x10 $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 Extra space Higher property value More storage space Higher monthly mortgage Increased utility costs Harder to clean Unused space A good starting point is to look at how your home is organized. Are you using the right size furniture, 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: Federal Reserve Bank of St. Louis United States Census Bureau Realtor.com

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