Market Share of 5,000+ Square Foot Homes Declines in 2023

The number of homes started in 2023 exceeding 5,000 square feet, dropped to 26,000, a decrease from 29,000 in 2022, according to the annual data from the Census Bureau’s Survey of Construction (SOC). In 2006, the number of new 5,000+ square foot homes reached a peak of 45,000. This number proceeded to drop during the Great Recession and hit a low of 11,000 in 2009. Since 2013, this number has remained consistently above 20,000, and reached a small peak of 33,000 in 2021.

Of the total number of new homes started in 2023, the share of new homes with 5,000+ square feet was down slightly as well, from 2.90% in 2021 to 2.76% in 2023. In 2015, the 5,000+ square foot home share reached a peak of 3.92%. Since then, the share has fluctuated in a band between 2.50% and 3.08%.  The 2023 decline in the share of 5,000+ square foot homes is consistent with the recent, quarterly downward trend in median and average size of new single-family homes. 

Tabulating the major characteristics of 5,000+ square foot homes started in 2023, the data shows 84% have a porch, 79% have a finished basement, 67% have 4 bathrooms or more, 61% have a patio, 60% have a 3-or-more car garage, 50% belong to a community association and 58% have 5 bedrooms or more.