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%
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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