Finding the Right Size Home

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Welcome to the First Time Homebuyers podcast , where we guide you on the exciting journey of purchasing your very first home . Today we're going to talk about finding the right size home for you and how it might be okay to buy a smaller home . It's easy to get caught up in the square footage race , looking at only homes over a certain size . You might find that a home on the smaller size might actually be more beneficial for you over the long run . According to Yardee Matrix data national data from two years ago a two-bedroom apartment has an average living space of 1,006 square feet . In San Diego it's roughly 996 square feet . Now , when looking at a single family home , the average two-bedroom in Southern California that sold in the last six months is 1,352 square feet , while in San Diego it's 1,234 square feet . What we're looking at is a 25% increase in San Diego to a 35% increase . When we're looking at a more regional level , needless to say , even the same number of bedrooms , you're already looking at a fairly substantial increase in living space alone . But even with a home that , on average , is larger than an apartment , how much larger do you need to go ? I think the big takeaway is to first realize that you're likely moving into a much larger living area and to not be dissuaded by a square footage number . So I want to talk about four key points . The first is how homes have changed through the years . Number two what are your long-term plans ? This can include current and future family plans , relocation options and things that might affect the resale value . Number three your lifestyle and how that might influence your decision , and this is going to include looking at homes that may have more emphasis on different room types from larger backyards , maybe smaller individual rooms , all within a similar square footage . And the last number four your budget . So let's start with talking a little bit about how homes have changed over the years , because this can also help narrow down homes that you might not have considered before .

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Homes during the early 20th century were generally smaller and much more modest compared to later decades . The average home size was around 1200 square feet , with most houses featuring very simple floor plans , small rooms and only the most basic of amenities . Now , going into the 1920s to the 1930s , homes began to incorporate what we would consider more modern conveniences indoor plumbing and electricity . But with the Great Depression in the 1930s , there was a huge slowdown in new home construction and a renewed focus on affordability , meaning smaller homes . But come into the 1940s , post-world War II housing boom led to a significant increase in home construction , with a focus on , again , affordability mass produced homes , mostly for the returning veterans and their families . The average home size began to increase slightly , reaching about 1,300 square feet . Many homes were built with minimal , traditional styles , very simple but functional designs and really focused on the suburban living . But then , when we start looking into the 50s and 60s , the suburban ideal became increasingly popular . Families started moving away from the urban areas , looking for larger homes and just more space . The average home size continued to grow now to 1,500 square feet . By the end of the 60s , we started seeing open floor plants , attached garages and large yards becoming standard features .

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When we moved into the 1970s , though , there was a shift towards more energy efficient homes , and that was really in response to things like the energy crisis and just a general increasing environmental awareness . The average home size continued to grow , reaching around 1,700 square feet , but there was a greater emphasis on things like insulation and energy efficiency , especially with things like windows , and including split level and bi-level homes , which really gained a lot of popularity because they added more living space on those smaller lots . Then we move into the 80s and this is where the trend of larger homes really began to take off . The average size of a single family home went from 1,700 square feet in 1980 to nearly 2,100 square feet by the end of the decade . This increase in size was driven by a growing economy , low interest rates and really a desire for more space to accommodate growing families and new household technologies .

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Then we come into the 90s and the McMansion era began . This really was construction of large homes with big open floor plants , high ceilings and really a focus on more luxury type items . The average home size continued to increase , reaching around 2,200 square feet by the end of the decade . Then , the early 2000s , we saw kind of a continuation of this trend , but the average home size peaked at about 2,500 square feet in 2007 . With the housing market crash at the end of 2008 , the subsequent recession in the late 2000 , there was actually a shift in priorities for many homeowners . As a result , there was a growing interest in smaller , more affordable and more energy efficient homes .

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In the 2010s , the tiny house movement actually gained momentum , with more people embracing more minimalism and downsizing to smaller , more sustainable living , while the average home size actually remained stable , the average home size continued to increase . It's around 2,400 to 2,500 square feet . There was a growing interest in homes between the 1,400 and 2,000 square feet . This shift was really driven by factors such as environmental concerns , financial stability and a desire for a little bit more simpler living .

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As we're in the 2020s , the COVID-19 pandemic has further influenced home-size trends . More people are working remotely and spending more time at home . There's a renewed interest in having additional space for things like home offices , gyms and , especially , outdoor living areas . However , the desire for energy efficiency and affordability still remains very important , leading to a continued interest in smaller , well-designed homes that maximize space without sacrificing comfort . When you shop for a new construction home today , you'll often find a blending of these aspects High efficiency , larger open living spaces with lofts or dens , or extra rooms that can be used as home offices . I see a trend in slightly smaller homes that have very well thought out layouts with large emphasis on common areas . The overall size of homes has doubled over the years , but room sizes in American homes have evolved to accommodate changing lifestyles , preferences and even technological advancements . Let's look at those a little bit more specifically .

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Living rooms in the early 1900s were smaller and very much formal rooms serving as space for entertaining guests . Now , as open floor plans became popular in the mid-20th century , living rooms began to expand and merge with other living spaces like dining rooms and family rooms . So today , living rooms are generally more spacious , with many homes featuring great rooms that combine living , dining and kitchen areas for a more open and connected feel . If you are one that really likes having a formal dining area , you may want to look at a home that's more built in the 60s or 70s or earlier , whereas the homes built in the 90s and beyond will often have those as just large open areas . In the mid-20th century , bedrooms were typically smaller and more modest , with limited storage and closet space . As home sizes increased in the latter half of the century , bedrooms also grew larger , with more emphasis on walk-in closets and sweet bathrooms . Today , master bedrooms are often very spacious , with ample storage and , quite honestly , luxurious in-suite bathrooms , while secondary bedrooms may still vary in size depending on the home's overall square footage . If the bedroom size is really important to you , the newer homes tend to have larger rooms . Your older homes will definitely have smaller rooms .

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Early 20th century kitchens were generally small and utilitarian , with limited counter space and very few built-in appliances . As cooking and entertaining became more intertwined , kitchens began to grow in size and functionality . The introduction of the open floor plan in the mid-20th century really further transformed kitchens into the central hub of the home large islands , lots of counter space and a much more open and connected layout . Today , kitchens are often the focal point of a home , with an emphasis on both functionality and aesthetics . If you are looking for a home which has a kitchen as a centerpiece , often you're going to be looking for a home built in the last 20 to 30 years Now .

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Early 1900s , bathrooms were small basic fixtures , limited storage and as indoor plumbing became more widespread , bathrooms began to incorporate more modern conveniences and grueling size . By the mid to late 20th century , bathrooms featured more counter space built in storage , larger showers or bathtubs . Today , bathrooms , especially master bathrooms , are often designed as spa-like retreats , with separate showers and tubs , double vanities and really luxurious finishes . If you're looking for a home that has a lot of multiple bathrooms that are very large and accommodating , it's definitely going to be something in the last 10 to 20 years . Sometimes The homes built in the 50s , 60s , 70s oftentimes only even have one bathroom , unless something's been done and updated them to have multiple bathrooms . Now the concept of a dedicated home office is a more recent development , becoming popular again in the last few years as remote work and technology used to increase . Early , home offices were often just small or repurposed rooms or nooks within the home . Today , home offices have grown in size and importance , with many homeowners seeking dedicated , spacious workspaces that can accommodate multiple workstations and technology needs . If that's something that's really important to you , again , this is probably something you're going to want to look at new construction homes , because they're going to have built-in office space already there .

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Why the history lesson ? Well , when you're looking for a home , you may want to really consider the year the home was built that most closely suits you and your lifestyle . If cooking and the kitchen is something that's center your social life , then a home built in the 60s or later , with a growing emphasis on each decade later , with bedroom sizes tending to also grow with each year . If that's not something that's very important to you , then you may be able to find an older home with a smaller square footage that still accommodates large social areas . For some , a master bathroom doesn't need to be a spa-like experience , and so home that's 20 or 30 years old may be something to consider , especially as many of the bathrooms were smaller than today , but still fully functional . Homes built in the 70s really started to utilize the space in a new way and added a lot of energy efficient options into the home . If those are important factors , you may find that the size isn't as noticeable .

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So now let's talk about long-term plans . This includes current and future family plans and relocation options , which also affects resale value . So let's talk about whether you're looking for a starter home or a forever home . Most people buying a starter home plan to stay there for maybe the next 5 to 7 years . If you have school-aged children , then it's important to look at the various schools , parks and even nearby shopping areas . The goal is to find a place that not only meets your family's current needs , but also offers potential for the near term future .

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Starter homes are usually going to be smaller and more affordable to you , but the expectation is that you will outgrow it and need to purchase another home . This can be a great way to use your home's growing equity from appreciation , as well as the equity you build from paying down your principal , to use towards a down payment . There is something to be cautioned about . In some markets you may have a starter home but the property values increased faster than you could save , causing you to be priced out of a larger home in your neighborhood . We're seeing this a lot across the country as home prices have soared and interest rates have increased , lowering your buying power . So make sure , even if it's a starter home , that it's still going to accommodate you comfortably enough to live for maybe more than just those 5 to 7 years .

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Now . If you're planning on buying your forever home , then you want to really think about possible long term things that are important to you . The size of the bedrooms may be less important than the quality of the schools or the availability of nearby parks and recreational activities . The best advice I can give is to take the time to think through what you need and want now , as well as what you may need in the future , such as a larger backyard for children or pets or a larger kitchen for entertaining . Now let's talk about your lifestyle and how that might influence your decision . This includes looking at how homes may have more emphasis on different room types , from larger backyards to smaller individual bedrooms within a similar square

Considering the Benefits of Smaller Homes

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footage .

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I've seen some amazing homes with their four bedrooms with a large backyard , yet they're 1,400 square feet . For many that's just too small . But when you walk through the home you may find that it has a really great use of space . The layout works and it has all the features you're looking for . This probably would have been filtered from your list . I think it's really important to consider a home that is 1,400 square feet and larger . You may be surprised what it can look like . The last part about your lifestyle is resale value .

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If you plan to move or your work isn't as stable as you'd like , you may want to consider how the size will affect your ability to sell the home . Just as you've likely filtered out a certain size home from your search , others will too . Even though you may have fell in love with the home and its great layout for the size , it can be hard for others to come to the same conclusion without touring . It's something you'll have to consider . A lot of buyers are putting 2,000 square feet or maybe 1,750 square feet is their minimum and anything below that they won't even tour . If you have a home that is on that smaller square footage size let's say maybe under 1,700 square feet , you should expect that the home selling process will be a little bit more difficult and the time on market to be longer . You may win overall if the price of the home is a lot more competitive than larger homes , once you get people to go ahead and tour .

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Now let's talk about budget . We just talked about pricing and how it could be more advantageous , but there's several advantages to buying a smaller home . From a financial standpoint right , the overall cost of ownership is going to be lower , both maintenance and utilities . A 2,100 square foot home will usually cost upwards of 50% more in heating and cooling expenses as a 1,700 square foot home , and it's just because there's that much more area to cover . Major issues like roof repairs are also less expensive , as you simply have less roof . From a daily cleaning standpoint , there's less to clean , so you can spend more time living .

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Smaller square footage homes also have a smaller footprint on your actual lot . If you're buying an attract , many of the homes will have a similar size lot , but a smaller home will take up less space , giving you more outdoor room . This can be a huge benefit for those with children or pets , who can take advantage of that outdoor freedom , or even those who just like to entertain with a backyard barbecue and get together . To me , the largest drawback to a smaller square footage home may not be as apparent at first , and that's storage . Expect a lot less closet space , less cabinet space and kitchens , fewer linen closets . But if the trend of the last few years with tiny homes has taught us anything , it's that there are a lot of options for clever storage , making use of less and living more . So maybe it's not a bad idea to take a hard look at what material things you have and look at what's most important to you .

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And the last part of budget is that a smaller home will usually cost less than a larger home . In San Diego , for example , three to four bedrooms , single family detached homes , the median price was $850,000 . While for the same number of bedrooms , but under 1,700 square feet , it was $757,000 , nearly an average of $100,000 less , which is 12% less the cost . That might just make the difference between what you can afford and continuing to rent . Also , note , the average square footage of these homes is 1,364 , still likely 20 to 30% larger than the equivalent apartment . And you also get a backyard , garage , driveway and the ability to build equity and generational wealth .

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So I haven't answered the question what size home should you buy ? Well , you have to make that choice yourself , but I would remove the minimum square footage filter from your search and look at those homes that others may have passed up . You may just surprise yourself . I've walked through 1,700 square foot homes that felt like 2,200 square foot ones and 3,000 square foot homes that felt like they were 1,000 square feet smaller . I'm seeing a huge influx of 1,500 to 1,700 square foot three and four bedroom homes here in Southern California as new construction homes and their lower cost overall . Plus , they have better energy efficiency , smart layouts and really emphasize communal areas in place of more luxurious bathrooms as an example . Is there a minimum size you should consider And , again , only you can make that decision But I've helped others buy homes that were 700

Rethinking Square Footage for Homebuying

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square feet new .

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It's plenty of room for them for where they're at in their lives . They're planning on buying a larger home in the future and keeping that home as a rental property , which is a great long term investment option . So remove that minimum square footage filter and see if maybe those homes might just be a great fit for you . Thanks everybody for listening . I really hope this helped make you think again about square footage . And if you guys want to learn more tips on home buying , head over to our website at FTHBprosecom . We've got all of our podcast episodes available there , articles , newsletter resources , along with our Facebook group , and we've got a few different tools there , like a home affordability calculator . Ken , thank you for your support and happy home buying .