Two out of three newly built, speculative single-family homes were sold on lots of 9,000 square feet or less, while 40% were on lots under 7,000 square feet, showing a record-high share of smaller lots in 2024, according to an analysis by the National Association of Home Builders.
In 1999, when the U.S. Census Bureau began tracking lot sizes, 46% of new for-sale single-family detached homes were on lots of 9,000 square feet or less.
After the Great Recession, the share of homes built on smaller lots rose rapidly, from 47% in 2010 to 61% right before the pandemic.
According to NAHB, the steadily rising share of homes built on smaller lots reflects lot shortages and home builders’ attempts to make new homes more affordable.
Read the full report here.
