World Stock Watch

The Surprising Truth About America’s Housing Space

A Record Number of Empty Bedrooms

Despite the current shortage of homes for sale, there’s a staggering amount of unused housing space in the United States. In fact, the number of extra bedrooms has reached an all-time high since the U.S. Census began tracking this data in 1970. According to a recent report from Realtor.com, there were 31.9 million extra bedrooms in 2023, up from 31.3 million in 2022.

The Shrinking Household Size

So, what’s driving this trend? One major factor is the decline in household size. In 1970, the average household had 3.1 people, but by 2023, that number had dropped to a record low of 2.5 people per household. This shift has led to a significant increase in the number of spare rooms.

Bigger Homes, Smaller Households

Ralph McLaughlin, senior economist at Realtor.com, attributes the rise in extra bedrooms to two main factors: “Homes are getting bigger, and household size is getting smaller.” Additionally, he notes that spare rooms are more common in affordable areas where it’s easier to buy a home with extra bedrooms.

The Evolution of Home Size

While the average size of new homes grew significantly during the “McMansion” era of the 1980s, it has plateaued over the past decade. Despite this, the average number of bedrooms per home has increased from 2.5 in 1970 to 2.8 in 2023.

Regional Trends

When it comes to excess space, the Mountain West and South regions lead the way. This is largely due to the availability of land and larger floor plans in these areas. In contrast, urban homes tend to have less excess space.

Did We Overbuild?

McLaughlin raises an important question: “If people value having extra space, then we didn’t overbuild during the McMansion era. But if homebuyers are simply tolerating these big homes because they’re what’s available, then perhaps we did overbuild a bit over the past few decades.”

Top 10 Markets with the Highest Share of Excess Bedrooms

1. Boise, ID
2. Provo, UT
3. Fayetteville, AR
4. Reno, NV
5. Colorado Springs, CO
6. Ogden, UT
7. Des Moines, IA
8. Omaha, NE
9. Wichita, KS
10. Knoxville, TN

Top 10 Markets with the Lowest Share of Excess Bedrooms

1. San Francisco, CA
2. New York City, NY
3. Los Angeles, CA
4. Seattle, WA
5. Boston, MA
6. Washington, D.C.
7. Miami, FL
8. Oakland, CA
9. San Jose, CA
10. Portland, OR