by American homes just aren’t what they used to be.
Many new-build homes are both smaller and more expensive than homes built thirteen years ago.
Census data shows that in the first quarter of 2024, the average size of single-family homes was 2,351 square feet, the smallest since the third quarter of 2009. This is down from a peak of 2,736 square feet in the first quarter of 2015.
Meanwhile, the cost of buying a typical home rose 82.9% over the same period, from $197,433 in September 2015 to $361,072 in June 2024, according to Zillow data.
The cost of building houses has also increased significantly. According to data from the National Association of Home Builders, the average permit value for single-family homes has increased 53.2% since 2010. This figure includes all construction costs, excluding land and plot costs.
Faced with higher costs for building materials and real estate, many builders are downsizing their projects to make them more affordable.
A July 2024 Research from John Burns Research and Consulting (JBREC), which surveyed 300 residential architects, designers and design-focused builders, found that 43% of respondents were working on smaller projects in 2023 than the year before, while only 15% took on slightly larger projects. projects. Additionally, an average of 27% of respondents downsized their projects last year to save money.
As homeowners and builders make difficult design choices, hallways are disappearing from many new construction homes.
Mikaela Arroyo, vice president of the New Home Trends Institute at JBREC, told Business Insider that builders and architects are instead “merging functional rooms together,” such as bedrooms and living rooms, to reduce wasted space.
Simply put: every inch matters. To compensate for smaller homes, many builders sacrifice what they call circulation spaces: areas that are not necessarily inhabited, but are connected to each other essential areas such as kitchens, bathrooms and bedrooms.
This approach is part of a strategy to maximize usable space as American homes continue to shrink.
“Homes are getting slightly smaller to increase affordability, but people increasingly need more functionality in their living spaces,” says Arroyo.
It is also a sign of the way we live now. We prefer open floor plans and large rooms, while minimizing the number of small spaces that are closed off from the rest of the house.
Homebuilders are prioritizing areas that are used the most
Taylor Morrison and Tri Pointe Homes, two of the largest homebuilders in the U.S., are among the companies building fewer hallways, Forbes reported earlier this year.
That includes Texas-based builder Highland Homes. The nearly 40-year-old company builds nearly 4,000 homes a year in major metropolitan areas, including Dallas-Fort Worth, Houston, Austin and San Antonio. The current portfolio includes more than 150 floor plans.
Jen Shurtleff, director of product research and development at Highland Homes, told BI that about 60% of the company’s top 50 floor plans have limited hallway space.
“Hallways are often thought of as ‘wasted space,’ so designers are moving toward open floor plans or multi-purpose spaces that flow seamlessly between rooms,” says Shurtleff.
She explained that a hallway can serve as a multifunctional space in various ways. For example, if it connects bedrooms, it could include a study area with a built-in desk and shelving. If it is located near entertainment areas, it may have a built-in bar.
The map of Palermo from Highland Homes. Thanks to Highland Homes
Take a map called Palermo, which Highland debuted in 2024.
It features four bedrooms, a games room, a study and an entertainment room. This floor plan, of approximately 4,500 square feet, could cost a buyer approximately $900,000 to $1.3 million.
Palermo’s floor plan offers minimal circulation space, with rooms directly connected. On the main floor, for example, the family room and dining area flow into the kitchen and breakfast nook. The primary suite is also connected to the family room.
While a hallway connects bedroom four to an upstairs games room, the builder added a closet there to make better use of the space.
“Eliminating traditional hallways in home design maximizes usable square footage and increases efficiency by allowing greater flexibility in layout,” said Shurtleff.
The 271 floor plan from Highland Homes. Thanks to Highland Homes
In contrast, a 2018 Highland Homes floor plan for a one-story home has more hallways.
Floor plan 271 starts at about $800,000 and includes four bedrooms, three bathrooms, a family room, a study and a three-car garage. It concerns approximately 2,900 square meters.
The layout consists of an entrance that connects to a vestibule that leads to a bedroom and the family room. A hallway connects bedrooms three and four with a bathroom and lifestyle room, while another leads to the garage, utility room and mud bank.
Why long corridors are becoming passé
There are several reasons why hallways are being phased out in new construction homes, other than saving money for builders.
One of these is the growing popularity of multiple generations living under the same roof.
More than one in four Americans—about 66.7 million adults (18 and older)—now live in households with three or more generations under one roof, an increase of 271%, according to a 2021 survey by the nonprofit Generations United compared to 2011.
Young adults move back in with their parents after graduation, parents live with their adult children during retirement (sometimes helping care for grandchildren), and siblings live together.
In response, many architects and builders are designing floor plans with multi-generational households in mind.
Highland Homes 608 Floor Plan. Thanks to Highland Homes
Above is the floor plan for Highland Homes 608, a two-story home of approximately 4,500 square feet, released in 2020. It costs between approximately $900,000 and $1.5 million.
The entrance to the house runs from the front door to the dining room. Along this path are the study, a curved staircase, the first garage, a bedroom and the media room.
The outdoor area and kitchen are accessed from the great room, while the courtyard and second garage can be reached through the kitchen.
“There are actually no hallways downstairs,” Shurtleff said. “Upstairs, next to the stairs, you do have a bit of a corridor to bedroom three, but it is all open fencing, overlooking the foyer space below.”
Upstairs is a flexible suite that homeowners can customize based on what they need, whether housing elderly parents or adult children. This suite, complete with bathroom, can be entered directly from the games room.
“We have buyers who want to use this suite as a place to stay for their parents, short or long term,” Shurtleff said. “We also have buyers who love this design for their older child, who may be returning from college before starting their career.”