The current state of the housing market presents an intriguing paradox. While potential homebuyers search for properties in a low-inventory environment, a significant amount of residential space remains unutilized. According to recent findings from Realtor.com, the number of spare bedrooms in American homes has reached an all-time high, marking a trend that merits closer examination.
The concept of “extra bedrooms” refers to rooms that exceed the number of residents in a home, with the latest data showing an impressive total of 31.9 million extra bedroom spaces across the nation. This figure represents a noticeable increase from the previous year’s 31.3 million and suggests a rapid expansion of available space in homes. Notably, this statistic has seen a fourfold rise compared to 1980 when there were only about 7 million extra bedrooms recorded. As household sizes shrink—from an average of 3.1 persons per household in 1970 to just 2.5 by 2023—the growing availability of bedrooms prompts questions about lifestyle preferences, economic conditions, and regional distinctions.
The phenomenon of diminishing household sizes comes alongside rising home sizes. Ralph McLaughlin, a senior economist at Realtor.com, attributes this shift to two key factors: the trend towards larger homes and the societal preference for smaller living units. As homes get bigger, the spaces within them become increasingly underused, further complicating the housing landscape. This raises a compelling question: Are these additional rooms genuinely sought after by homebuyers, or have builders simply saturated the market with more space than is needed?
The so-called “McMansion” era, which saw home sizes soar beginning in the 1980s, appears to have plateaued in recent years as constraints such as rising construction costs and growing public emphasis on environmental efficiency have tempered builders’ ambitions. With new homes averaging 2.8 bedrooms today—unchanged in the past decade—it’s evident that while the appetite for space has noticeably grown, so too have the limitations on providing that space.
Geographical dynamics play a crucial role in understanding the surplus of bedrooms across different housing markets. The Mountain West and Southern regions reveal the highest trends of excess space due to available land and larger home blueprints. In contrast, urban locales present a stark contrast, showcasing limited space and heightened demand for more efficient use of available real estate. McLaughlin raises the point that the balance of preference between larger homes and available housing stock will affect future real estate developments.
Further illustrating this regional disparity, markets like Ogden, Utah (with excess bedrooms comprising 12.2% of total bedrooms) and Colorado Springs, Colorado (12.1%) starkly contrast with places such as Miami (5.9%) and New York (6.5%), where the inventory of unnecessary bedrooms is markedly lower. This difference underscores not just regional preferences but also the economic realities that dictate what types of properties can be feasibly constructed based on local demand.
As we look to the future of residential real estate, the revelation of so many unoccupied bedrooms prompts a multifaceted discussion. While this trend reflects changing demographics and consumer behavior, it also raises concerns about potential overbuilding or misalignment of supply with actual market demand. In a landscape characterized by constant evolution, the debut of excess space in American homes could signal both an opportunity for innovative living solutions and a challenge for an industry eager to cater to shifting preferences.
The high number of empty bedrooms reveals a need for re-evaluation in how we perceive housing needs, design preferences, and the economics of residential living in a modern American context. As understanding of these dynamics evolves, industry stakeholders must adapt to ensure that the housing market remains relevant in addressing societal needs.