10 US Cities Where Buyers Are Paying More Money for Smaller Homes

Shrinkflation has hit the US housing market, leading homebuyers to pay more for smaller properties, a recent study found.

By definition, shrinkflation is a phenomenon that happens when a company reduces the amount or volume per unit of a product without changing its retail price. In the real estate industry, the median American home is now smaller by at least 128 square feet compared to 2019. However, the median sale price continued to increase by $125,000 over the same period.

By percentage points, the square footage of a median US home reduced by 6% while the price by square foot soared by 52%. That is according to a USA Today Homefront study, which analyzed data from Realtor.com.

Where Shrinkflation Hit the Most

Homes have been getting smaller across 150 of the most populous metro areas in the country. All 150 metros also reported increasing home prices. However, there were 10 cities where buyers were paying the most for smaller homes, per the analysis.

Colorado Springs, CO

Median Square Footage (2019): 2,983

Median Square Footage (2024): 2,351

Percentage Change in Square Footage: -21.19%

Listing Price in 2024: $525,000

Percent Change in Listing Price (2019 - 2024): +25.30%

Charlotte-Concord-Gastonia, NC-SC

Median Square Footage (2019): 2,547

Median Square Footage (2024): 2,031

Percentage Change in Square Footage: -20.26%

Listing Price in 2024: $441,170

Percent Change in Listing Price (2019 - 2024): +23.06%

New York-Newark-Jersey City, NY-NJ-PA

Median Square Footage (2019): 1,930

Median Square Footage (2024): 1,556

Percentage Change in Square Footage: -19.38%

Listing Price in 2024: $789,000

Percent Change in Listing Price (2019 - 2024): +34.87%

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Urban Honolulu, Hawaii

Median Square Footage (2019): 1,244

Median Square Footage (2024): 1,010

Percentage Change in Square Footage: -18.81%

Listing Price in 2024: $725,000

Percent Change in Listing Price (2019 - 2024): +3.79%

Hickory-Lenoir-Morganton, NC

Median Square Footage (2019): 2,332

Median Square Footage (2024):1,920

Percentage Change in Square Footage: -17.67%

Listing Price in 2024: $375,420

Percent Change in Listing Price (2019 - 2024): +25.56%

Houston-The Woodlands-Sugar Land, TX

Median Square Footage (2019): 2,512

Median Square Footage (2024): 2,088

Percentage Change in Square Footage: -16.88%

Listing Price in 2024: $372,900

Percent Change in Listing Price (2019 - 2024): +15.53%

Washington-Arlington-Alexandria, DC-VA-MD-W.VA

Median Square Footage (2019): 2,340

Median Square Footage (2024):1,965

Percentage Change in Square Footage: -16.03%

Listing Price in 2024: $632,004

Percent Change in Listing Price (2019 - 2024): +30.31%

San Antonio-New Braunfels, TX

Median Square Footage (2019): 2,323

Median Square Footage (2024):1,952

Percentage Change in Square Footage: -15.97%

Listing Price in 2024: $349,000

Percent Change in Listing Price (2019 - 2024): +18.31%

Raleigh-Cary, NC

Median Square Footage (2019): 2,629

Median Square Footage (2024): 2,219

Percentage Change in Square Footage: -15.60%

Listing Price in 2024: $470,000

Percent Change in Listing Price (2019 - 2024): 25.00%

Winston-Salem, NC

Median Square Footage (2019): 2,296

Median Square Footage (2024): 1,939

Percentage Change in Square Footage: -15.55%

Listing Price in 2024: $364,995

Percent Change in Listing Price (2019 - 2024): +32.73%

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