What is the ideal home size for today’s homebuyers? It’s a common question among new-build investors. Although the question does not come with a turnkey solution, market and consumer analysis can uncover the most popular, high-demand square footage and home layouts for today’s demographics.
Fortunately, Finance of America Commercial (FACo) has researched the latest trends in real estate for you and uncovered what consumers want in today’s modern homes regarding:
Let’s dive in.
Fortunately, Finance of America Commercial (FACo) has researched the latest trends in real estate for you and uncovered what consumers want in today’s modern homes regarding:
- Ideal home size
- Floor Layout
- Outdoor Space
- Lot Space
Let’s dive in.
The Ideal Home Size in 2025
On average, the “ideal” square footage per person in a home is between 600 and 700 square feet. That means the ideal square footage for a family of 4 would be between 2,400 and 2,800 square feet. Of course, these estimates can change based on lifestyle and circumstances. For example, the ideal home size for a retired couple later in their life will be much smaller than that of a newly married couple with hopes to build a family.
With the average family size in the US over three people, it’s no wonder the median square floor area for a single-family home (SFH) is now 2,205 in the US. But, do today’s consumers care more about square footage or the number of rooms a home offers? While some could argue both, ample space has become a non-negotiable for homebuyers in 2025. Families are looking for extra room, not only for a growing family, but for practicality and comfort in today’s society.
With remote working continuing to shape home lifestyles and more families opting for at-home movie and entertainment options, we expect the minimum square footage per person in a living space and floor plan designs to continue to evolve–requiring more space, flexibility, and functionality for today’s consumers.
With the average family size in the US over three people, it’s no wonder the median square floor area for a single-family home (SFH) is now 2,205 in the US. But, do today’s consumers care more about square footage or the number of rooms a home offers? While some could argue both, ample space has become a non-negotiable for homebuyers in 2025. Families are looking for extra room, not only for a growing family, but for practicality and comfort in today’s society.
With remote working continuing to shape home lifestyles and more families opting for at-home movie and entertainment options, we expect the minimum square footage per person in a living space and floor plan designs to continue to evolve–requiring more space, flexibility, and functionality for today’s consumers.
The Evolution of the Modern Floor Plan
While interior design trends come and go with the seasons, home floor plans are more enduring. They shape how we interact and utilize our home and its space. While open-concept living has dominated floor plan designs for the last 20 years, providing homeowners with a sense of openness and freedom, semi-open plans are gaining popularity in today’s markets.
As the ideal home size grows, so do consumers’ demands for practicality. This includes options to utilize and optimize any extra space. Semi-open floor plans enable homeowners to capture a unique balance of connectivity and solitude in a home. Natural and open pathways, subtle dividers, and strategically positioned furniture can help maintain an aura of openness while creating pockets of solitude throughout a property.
In 2025, flex space concepts will continue to dominate and dictate how homeowners utilize every inch in their homes. Flex spaces are rooms or areas in a home specially designed for multiple reasons. With interior house features like a home office, gym, and even a movie theater becoming non-negotiables, flex spaces provide the flexibility and freedom to create these multi-purpose rooms throughout the home. Since there isn’t really an “ideal home gym size” or “ideal home theater size”, flex spaces, along with a semi-open floor plan model, can empower homeowners to create optimal, multi-use spaces.
As the ideal home size grows, so do consumers’ demands for practicality. This includes options to utilize and optimize any extra space. Semi-open floor plans enable homeowners to capture a unique balance of connectivity and solitude in a home. Natural and open pathways, subtle dividers, and strategically positioned furniture can help maintain an aura of openness while creating pockets of solitude throughout a property.
In 2025, flex space concepts will continue to dominate and dictate how homeowners utilize every inch in their homes. Flex spaces are rooms or areas in a home specially designed for multiple reasons. With interior house features like a home office, gym, and even a movie theater becoming non-negotiables, flex spaces provide the flexibility and freedom to create these multi-purpose rooms throughout the home. Since there isn’t really an “ideal home gym size” or “ideal home theater size”, flex spaces, along with a semi-open floor plan model, can empower homeowners to create optimal, multi-use spaces.
Outdoor Living: Functionality Over Space
Gone are the days of vast green backyards and picket fences. With the rise in urban housing demands, today’s consumers prioritize outdoor functionality over space. Modern home designs embrace a seamless connection between the indoors and outdoors, transforming outdoor aesthetics into extensions of a family’s indoor living.
In 2025, priorities in outdoor living spaces will shift from openness and space to privacy and versatility, with essential features including:
While green spaces, natural elements, and well-maintained landscaping are still essential, the size of yards is not considered a “deal breaker” for most homebuyers.
In 2025, priorities in outdoor living spaces will shift from openness and space to privacy and versatility, with essential features including:
- Outdoor kitchens & dining areas
- Patios with outdoor furniture
- Water features like fountains, ponds, or small pools
- Fire pits
- Pergolas or ramadas
While green spaces, natural elements, and well-maintained landscaping are still essential, the size of yards is not considered a “deal breaker” for most homebuyers.
The Ideal Lot Size for New-Build Investments
The shift among today’s consumers to maximize space and functionality is affecting the way developers build single-family homes. A trend toward smaller lots, a relatively recent phenomenon, seems counterintuitive with today’s ideal home size. However, increasing land costs coupled with demands for affordability make smaller lots a more desirable approach for home shoppers and investors alike.
Today, the majority of SFRs are being built on lots of 9,000 square feet or under (less than one-fifth of an acre). With less lot space, investors and builders turn to two-story home designs to meet today’s ideal home size for consumers. Two-story homes are far more space-efficient, enabling builders to fit more house square footage on less land. And, surprisingly, two-story homes are cheaper to build.
Aside from the smaller necessary lot size, two-story homes:
By offering more space on less land, two-story homes help builders cater to consumer demands without breaking the bank.
With evolving lifestyles, home design wants and needs continue to change. For new-build investors and builders, providing consumers with the ideal home size will be critical to business success. While square footage and space continue to be non-negotiables, creating a functional, efficient, and cost-effective living space–both inside and out–is necessary to attract today’s homebuyers.
Today, the majority of SFRs are being built on lots of 9,000 square feet or under (less than one-fifth of an acre). With less lot space, investors and builders turn to two-story home designs to meet today’s ideal home size for consumers. Two-story homes are far more space-efficient, enabling builders to fit more house square footage on less land. And, surprisingly, two-story homes are cheaper to build.
Aside from the smaller necessary lot size, two-story homes:
- Require less foundation and roofing material than ranches and other single-story layouts.
- Make plumbing and electrical installation easier and more centralized, reducing labor and material costs.
- Appreciate faster than single-story homes.
By offering more space on less land, two-story homes help builders cater to consumer demands without breaking the bank.
With evolving lifestyles, home design wants and needs continue to change. For new-build investors and builders, providing consumers with the ideal home size will be critical to business success. While square footage and space continue to be non-negotiables, creating a functional, efficient, and cost-effective living space–both inside and out–is necessary to attract today’s homebuyers.
FACo: Helping You Cater to Today’s Homebuyer
While the definition of “ideal” regarding home size, features, and layout continues to evolve, the strategy for new-build investing success has not. A strong business plan, market research, and reliable funding are the cornerstones of investment success.
FACo has been helping investors build, renovate, rent, and/or sell properties, expand portfolios, and grow for over a decade. Our team of dedicated industry professionals can help you navigate the complexities of the 2025 real estate market while providing the most accessible and flexible financing programs on the market.
Our New-Construction Loans offer:
Make sure you check all the boxes on your new-build investment and provide the ideal home size, layout, and features by partnering with the best capital partner. CLICK HERE to schedule a FREE consultation today.
FACo has been helping investors build, renovate, rent, and/or sell properties, expand portfolios, and grow for over a decade. Our team of dedicated industry professionals can help you navigate the complexities of the 2025 real estate market while providing the most accessible and flexible financing programs on the market.
Our New-Construction Loans offer:
- Up to 100% of construction costs
- 1-4 non-owner occupied unit residential, townhome, and condo eligibility
- Quick and easy mobile draw requests with Snap Draws DIY
Make sure you check all the boxes on your new-build investment and provide the ideal home size, layout, and features by partnering with the best capital partner. CLICK HERE to schedule a FREE consultation today.
