Many trends have recently pointed towards small being the “new big” in the recent years. The median size of the single family home has dropped nearly 50 square feet from 2277 square feet to 2215 square feet in the past 14 years. According to a recent article, with the economy and the real estate industry dwindling, large homes are not sought after so much. Many buyers see a large house as a waste of space as well as see the benefit of reducing energy costs and utilities by having a smaller space.

“When the economy is weak, unemployment is high, income gain is slower or nonexistent, people tend to focus on simpler things, less expensive things,” said Kermit Baker, chief economist for the American Institute of Architects. Another reason for the popularity of smaller homes is the first-time home buyer incentive that allows for an $8,000 federal tax credit. First-time home buyers tend to purchase a smaller home such as a townhouse.

According to a survey found by the National Association of Home Builders almost 9 out of 10 homebuilders are beginning to build smaller homes, a trend that began in 2008. Another survey by the American Institute of Architects shows that clients are asking for smaller homes. Some homebuilders have started to introduce smaller floorplans for their homes, narrowing down bedroom sizes for example.