The current real estate landscape presents a fascinating paradox: while fewer homes are available for sale, a staggering number of bedrooms remain unoccupied. The recent findings from Realtor.com indicate that the number of extra bedrooms—defined as those beyond the occupancy needs of the household and often including rooms earmarked for offices—has skyrocketed. In 2023, the figure reached an unprecedented 31.9 million extra bedrooms, a notable increase from 31.3 million in 2022. Comparing these statistics to those from as recently as 1980, where only 7 million extra bedrooms existed, highlights a seismic shift in residential space utilization in the United States.
This trend can be traced back to a decline in household sizes. The average number of individuals living in a household has decreased from approximately 3.1 in 1970 to just 2.5 in 2023. Such a dramatic reduction begs the question: why do we have so many additional bedrooms, and what does it mean for our housing market moving forward?
As Ralph McLaughlin, a senior economist at Realtor.com, points out, two primary factors contribute to this phenomenon: increasing home sizes and declining household occupancy. Over the years, the desire for larger homes—particularly during the “McMansion” era that began in the 1980s—has led to the construction of residences with numerous spare rooms. However, this trend has plateaued in the last decade due to economic factors, rising material costs, and a growing consumer awareness surrounding environmental sustainability.
Despite the stagnation of home size expansion in recent years, the average number of bedrooms per home has demonstrated a slow but steady increase from 2.5 in 1970 to 2.8 in 2023. The data reveals that while more bedrooms are being constructed, the footprint of these homes may not consistently align with the needs of modern households. In fact, the oversaturation of extra rooms may become a critical consideration for future real estate endeavors.
Regional differences compound the complexity of this situation. Realtor.com’s analysis highlights that areas such as the Mountain West and the South exhibit the highest excess space trends attributed to the availability of land and spacious housing. These regions have benefitted from larger floor plans, which cater to a demographic willing to invest in spacious living environments. Conversely, urban settings such as Miami, New York, and Los Angeles reveal a stark contrast, displaying some of the lowest percentages of excess bedrooms. In these bustling metropolises, space is often at a premium, underscoring the variance in housing market dynamics across the United States.
McLaughlin’s insights raise pertinent questions about future housing development. If homebuyers are genuinely seeking additional space, it could suggest that the industry hasn’t oversaturated the market during the McMansion period. Conversely, there exists the possibility that many have settled for larger homes out of necessity rather than desire, suggesting a potential oversupply in certain housing sectors.
When we examine metropolitan areas with the most significant shares of excess bedrooms, markets such as Ogden, Utah, and Colorado Springs, Colorado, dominate the list, boasting 12.2% and 12.1% of their total bedroom counts designated as excess, respectively. Comparatively, cities like Miami and New York restrict their inventory to only 5.9% and 6.5%, respectively.
As the nuances of these markets evolve, it provokes an essential dialogue about not only housing demands but also the importance of aligning building practices with actual consumer needs. The push for more spacious residences may contradict increasing trends toward downsizing, adaptable living, and efficient uses of space.
The ongoing trend of rising empty bedrooms reflects deeper societal shifts in living arrangements, preference for space, and available housing types. As American households continue to grapple with fluctuating demands for space, the real estate market faces an essential challenge: meeting diverse needs while managing the excess. With the balance between larger homes and smaller families shifting, policymakers, builders, and buyers alike must adapt to the implications of empty spaces. As we navigate this complex landscape, finding a sustainable equilibrium between size and necessity will be key to the future of housing in America.