The average home size in the United States in 1960 was 1,200 square feet, in 2025 the average is 2,408. Even as the size of a typical family shrinks home sizes continue to increase.

It may be societal pressure or consumerism that makes us feel more is better.  

But as more people embrace minimalism the trend may be changing. Smaller homes are becoming more common and even “tiny houses” have become an option for some.

While a small home may not be for everyone there are benefits to living with less.

Less Expensive

In general living in a smaller home is less expensive. You pay for square footage so purchasing a smaller home will often come with a lower price tag. Your homeowner’s insurance and property taxes will be lower in a small home. Utility costs will be lower since it costs less to heat, cool and light a smaller home. Remodeling projects will also be less expensive, you will need less paint, flooring and other materials when updating.

Less Time Spent Cleaning

Smaller spaces mean you will spend less time cleaning and maintaining your home.

More Intentional Spending

When you live in a small space you will be more careful about what you buy. You won’t have the room for unnecessary items. A smaller home comes with built in limits, you only have so much space to fill.

Less Stress & More Contentment

Smaller homes and fewer possessions often mean less stress and more contentment. Since there is less to care for you won’t worry as much and will have a greater appreciation for the things you do own.

Better Chance of Living Within Your Means

If you have a large mortgage payment, costly insurance, property taxes and utility bills you may have a hard time covering those expenses. An affordable home leaves more money in your pocket.

No Need to Downsize in the Future

Many people choose to downsize when their children leave home or as they approach retirement, if you already live in a small home there will be no need to move.

You Will Be More Organized

Living in a smaller space requires you to be more organized, you will have less space to store unnecessary items, and you will be more thoughtful about what you bring into your home. This makes it easier to put things away and find what you are looking for.

Consider the benefits of a small home and decide if it is right for you.