American homes are shrinking.
From 2017 to 2025, the size of the median home dropped an average 6% from 1,976 square feet to 1,852 square feet, according to research compiled by Level Frames, an online framing company.
Colorado’s homes are shrinking at the second-fastest rate in the U.S., behind only Hawaii.
Between 2017 and 2025, the median home size in Colorado decreased by 17%, from 2,528 to 2,088 square feet.
Despite this reduction, Colorado homes remain relatively large. With a typical size of 2,088 square feet in 2025, they are still nearly 12% bigger than the national average of 1,852 square feet.
Homes in the Denver-Aurora-Centennial metro area are nearly 26% smaller than in 2017. The average home size has decreased from 2,883 to 2,142 square feet, a loss of approximately 740 square feet —over a quarter of its original size.
Although the overall size of houses is decreasing, the number of homes with four or more bedrooms has increased by 17%. So, while houses are getting smaller, they are being divided into more rooms.
But Colorado homes remain spacious compared to those in Hawaii, where houses are about 20% smaller than they were in 2017
Between 2017 and 2025, the median home size in Hawaii dropped from 1,376 to 1,104 square feet.
Reconfiguring the space
Although the overall size of houses is decreasing, the number of homes with four or more bedrooms has increased by 17%. This trend shows that as houses shrink in size, homeowners are creating more rooms.
Here are some key factors influencing the shift in home design:
Rising costs: Smaller homes are becoming popular, with 38% of builders focusing on them to reduce sale prices as land and building material costs continue to climb.
New household needs: Extra rooms are used for home gyms or offices, as more Americans work from home and prioritize functional spaces.
Buyer preferences: Homes with multiple smaller bedrooms appeal to buyers for their versatility and potential resale value. Experts say converting living spaces into bedrooms can yield returns of 80% to 100%.
The vanishing dining room
During the pandemic, many homeowners repurposed their dining rooms into offices, playrooms, or classrooms for their kids. And they kept them that way.
According to Realtor.com research, only 25% of listed properties feature a dining room, but this may not reflect the actual number, since some realtors choose not to highlight those spaces.
The rise in single homebuyers—over a quarter of households in the U.S. now consist of a single person, a number that has tripled since 1940—also contributes to the decline in formal dining rooms.
Instead, buyers are now more interested in features such as show kitchens with large eat-in islands, mud rooms, and lavish laundry rooms.
The news and editorial staffs of The Denver Post had no role in this post’s preparation.
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