New Homes Shrinking as Buyers Put Affordability, Functionality Before Square Footage

Tuesday, July 7th, 2026

As housing affordability challenges remain, the square footage of new homes is shrinking as buyers are learning to prioritize.  Per findings from the economics team of data platform Zonda Home (published by New Home Source), the average new home is about 2,175 square feet as of December 2025. This is about 125 feet smaller than…

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