Homes Are Shrinking Fast, With Hallways Being The First To Go

American homes are getting smaller in an era of soaring home prices and stubborn mortgage rates. And in the downsizing trend, one familiar feature is rapidly disappearing — the hallway.

According to a report issued by Realtor.com, the median size of newly constructed single-family homes has shrunk to 2,140 square feet in the first quarter of this year, down 116 square feet from the previous year. The shift departs from the "McMansion" era that dominated pre-pandemic housing trends.

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"The median price of homes for sale this June remained stable compared with last year, at $445,000," said Ralph McLaughlin, senior economist at Realtor.com. "However, the median price per square foot grew by 3.4%, indicating that the inventory of smaller and more affordable homes has grown in share."

The report said the trend toward smaller homes is more pronounced in the South, where the inventory of houses priced between $200,000 and $350,000 surged by 50% compared to last year. This shift is reshaping the size of homes by way of their layout.

Architectural designers surveyed by Realtor.com predict that hallways will become increasingly rare in new home designs. "Circulation space like hallways use square footage while typically not providing any function," Jenni Nichols, vice president of design for John Burns Research and Consulting, was quoted in the report. "They become one of the features that are easy to cut back on."

The disappearance of hallways is just one way designers maximize living space in smaller footprints. Other space-saving features gaining popularity include eat-in kitchens, pocket offices, and Jack-and-Jill bathrooms.

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For many buyers, the trend toward smaller homes has a silver lining: lower costs.

Jason Gelios, a real estate agent with Community Choice Realty in Southeast Michigan, noted, "In the new-home build market, builders are striving to meet the demand of smaller-square-footage homes." The shift is making homeownership more attainable for some buyers, particularly as mortgage rates remain high.

However, the transition to smaller homes isn’t without its challenges. Some buyers, accustomed to more spacious layouts, may find the new designs claustrophobic. And for families with children or those who work from home, the loss of private corridors could mean decreased privacy and quiet spaces.

Despite the potential drawbacks, industry experts expect the trend to continue. The U.S. Residential Architecture and Design survey found that 43% of production residential designers worked on smaller projects last year compared to the previous year, with 27% reducing project sizes specifically to save on costs.

As American homes continue to shrink, the way we live and use our spaces is evolving. The hallway may be fading into architectural history, but in its place, a new era of creative, efficient home design is emerging. 

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