Watercolor Render of Historic Single-Family Homes
The American Dream of owning a single-family home has significantly transformed over the past fifty years. In tandem with increasing average home size, the average household size in the U.S. has steadily declined. This demographic shift has had a profound impact on housing costs per person, making it increasingly difficult for many Americans to achieve homeownership.
In the mid-20th century, the average American home was considerably, far smaller than the 2500sf average home size of 1,500 sf today. Post-World War II economic prosperity and suburbanization fueled a demand for larger homes in the United States, leading to a steady increase in average square footage since that time. Simultaneously, societal changes such as delayed marriage, increased divorce rates, and smaller family sizes contributed to a decline in average household size.
The combination of these two demographic trends has led to a significant increase in housing costs per person. As the demand for larger homes has grown, the cost of construction and land has also risen. This trend has been particularly pronounced in urban areas, where housing prices have surged due to limited land availability and ever-higher demand. The general flow of the American population away from rural communities has exacerbated this situation in many urban areas.
The U.S. stands out among developed countries for its large housing units and low household occupancy rates. In many European countries, for example, homes are generally smaller, and multiple generations often live together. This cultural difference contributes to lower housing costs per person in these nations. Additionally, government policies in some European countries, such as rent control and public housing subsidies, can help to mitigate the impact of rising housing costs. At the higher end, the construction of very large and multiple houses (as is the case with many in the Newport Community) for a single family, has also had the net effect of increasing the average home size even as most people have found housing taking up an ever-larger portion of their incomes.
The increasing cost of housing in the U.S. poses significant challenges for younger generations. Many young adults are delaying homeownership or opting for rental housing due to the high cost of purchasing a home. This trend has implications for economic mobility and long-term financial security. Clever architectural design is one way for smaller homes to function and feel like larger ones. Interestingly, the average home size graph seems to have peaked during the COVID crisis when houses suddenly needed to become offices, schools, and gyms (among other things) for their owners. Perhaps we are seeing the first signs of shifting to smaller, but more carefully designed homes.
Addressing the affordability crisis will require a multifaceted approach. Potential solutions include increasing the housing supply through zoning reforms and infrastructure investments, promoting denser housing development, and expanding affordable housing programs. Additionally, policies that support smaller, more efficient homes could help to reduce construction costs and increase housing affordability. We are also currently working on creating several Accessory Dwelling Units for parents and children of the main property to help deal with their living requirement. It will take efforts on all fronts, and smarter more efficient home designs to address the challenge of housing costs in the United States which have risen to the top of the political agenda. A4 Architecture is here to help!
Ross Sinclair Cann, AIA is a historian, educator and practicing architect. He is the Founding Principal of A4 Architecture in Newport, Rhode Island and holds architecture degrees from Yale, Cambridge, and Columbia Universities. A4 Architecture is working to create high-quality, multi-family developments through Rhode Island and the surrounding states.