The Future of the CFO: From Number Cruncher to Value Driver

The Average Lot Size in Every U.S. State in 2022

The “American Dream” is often associated with imagery of spacious estates adorned with white picket fences, wrap-around porches, and sprawling green lawns that seem to go on forever.

But in reality, modern American life has become much more compact. Over the last few decades, the average lot size in the U.S. has decreased significantly—from 18,760 square feet in 1978 to 13,896 in 2020.

While average lot sizes are getting smaller overall, there are still large discrepancies in lot sizes from state to state. This graphic by Angi uses data from the 2022 U.S. Lot Size Index to show the average lot size in every U.S. State, using data from 312,456 Zillow listings as of May 2022.

Largest and Smallest Average Lot Sizes by State

When it comes to the states with the largest plots of land, New England dominates the ranking, with Vermont, New Hampshire, and Maine at the top of the list.

New England was one of the first regions settled by the Europeans in Colonial America. This long history, along with a large rural population, could explain why the area has strict zoning policies that limit density and require large minimum lot sizes for new builds.

On the opposite end of the spectrum, Nevada ranks as the state with the smallest average lot size:

One possible explanation is that Nevada’s population boom—and subsequent development—is relatively recent. Newer homes listed in the dataset tend to have smaller lot sizes, and in Nevada, 34.6% of homes included in the research were built in 2000 or later.

Comparing Lot Size to Land Price

Generally speaking, the states with the biggest lots also tend to have the cheapest land when broken down per square foot. For instance, in Vermont, properties sold for an average of about $5.95 per square foot.

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On the flip side, in Nevada, land sold for an average of $82.80 per square foot—that’s the third most expensive of any state.

Of course, other factors are at play here when it comes to the cost of land. Like anything else that’s for sale, the price of a lot is governed largely by the laws of supply and demand.

For example, housing supply is scarce in Hawaii, where only 4.9% of the land is zoned for residential development, and the average home size is much smaller than in other parts of the country. Not surprisingly, the average plot of land in Hawaii costs $110.86 per square foot, the most expensive on the list.

The Future of Housing in America

Average lot sizes remain relatively large in some states for now, but as the U.S. population continues to become more urbanized, living conditions in America could get even tighter.

Will America hold onto its spacious way of living, or could life in the U.S. start to resemble more densely populated regions in the future?

The Average Home Size in Every U.S. State in 2022

Over the last century, the average home size in the U.S. has skyrocketed. In 1949, the typical single-family home was just 909 square feet—by 2021, it had shot up to 2,480 square feet.

While U.S. homes are getting larger on the whole, they still vary drastically depending on the location. What areas in the U.S. have the largest homes, and which ones have the smallest?

This graphic by American Home Shield uses data from the 2022 American Home Size Index to show the average home size in every U.S. state.

The 2022 American Home Size Index

The index uses data from 474,157 listings of both houses and condos for sale on Zillow as of May 2022. After the data was compiled, it was organized by state and city, and the median home size was then calculated for each area.

According to the findings, there was a strong correlation with the average size of a home and the age of the area’s housing stock. For instance, Utah is the U.S. state with the largest average home size, with an average of 2,800 square feet. And since the state’s average home was built in 1989, it has the third-youngest home stock of any state across the country.

This trend is apparent on a city-level as well. Here’s a look at average home size across America’s top 50 most populated cities (with available data):

As the graphic shows, up-and-coming tech hubs like Raleigh and Colorado Springs have some of the largest homes.

Colorado Springs in particular has seen a significant influx in employment over the last few years, which has attracted high-income tech workers to the area driven up demand for spacious single-family dwellings.

The Price of Real Estate Compared to Average Home Size

The data also showed a relationship between an area’s average price of real estate and the average home size. For instance, Hawaii has the smallest average home size of any state, as well as the most expensive at $743.86 per square foot.

This trend is apparent in the state of New York as well, which had the second smallest average home size. New York’s average home costs were $421.49 per square foot, the third-most expensive of any state.

Lot Size vs. Home Size

Interestingly, while average home sizes in the U.S. have gotten larger over time, the average lot size has shrunk over the years.

In 1978, the average lot size for a U.S. property was 18,760 square feet, but by 2020, this figure had dropped to a record low of 13,896 square feet.

With lot sizes shrinking, will there come a point where home size growth across the country starts to plateau, or even shrink?