During the COVID-19 pandemic, the housing market shifted towards people wanting to live in larger homes and moving from urban areas to suburban and rural neighborhoods.
American Home Shield reviewed 506,374 listings of houses and condos for sale from Zillow to determine the results of its 2022 American Home Size Index, which showcased the cities in the United States with the biggest homes.
According to Census Bureau data, some key findings from the index showed that the average new homes in the U.S. are now more than 1,000 square feet bigger than in 1973.
The index also stated that fast-growing tech hubs in the Rocky Mountains have the largest homes, and high-density coastal cities have the most expensive real estate, which is what's driving people to look for cheaper homes elsewhere.
No. 1 city in the United States with the biggest homes: Colorado Springs, CO
Average home size: 2,760 square feet
According to the American Home Shield index, employment in Colorado Springs grew 5.3% from 2017 to 2021. The new, high-income workers created a demand for larger homes.
With employment growth shifting to smaller, suburban cities and the focus on affordable housing and lower living costs, it makes sense why the Colorado city had a demand for newer, larger homes.
Top 10 cities in the United States with the biggest homes
- Colorado Springs, CO
- Aurora, CO
- Raleigh, NC
- Henderson, NV
- Fort Worth, TX
- Nashville, TN
- Austin, TX
- Albuquerque, NM
- Omaha, NE
- Charlotte, NC
The city that ranked in second place for having the biggest homes in the United States was Aurora, Colorado. The average home size in the Colorado city is 2,451 square feet. According to the U.S. Bureau of Labor Statistics, from 2017 to 2021, employment grew in Aurora by 5.7%, and that influx of new workers created a demand for new housing.
The North Carolina city of Raleigh ranked in the third spot for the biggest homes in the United States. According to the index, Raleigh is yet another example of a fast-growing, well-educated area that has allowed wealth to flourish in the midsize city and created a demand for bigger homes. The average home in Raleigh comes in at 2,366 square feet.
Sign up now:Get smarter about your money and career with our weekly newsletter
Don't miss:
These are the 10 cheapest states to buy a house in 2022—and Florida isn't one of them
Las Vegas is the No.1 happiest place to travel to in North America—here's what else made the list
As a seasoned real estate analyst with a comprehensive understanding of housing market trends and dynamics, I've delved into numerous datasets, market reports, and industry analyses to offer insights that go beyond the surface level. My expertise stems from years of scrutinizing market shifts, studying economic indicators, and interpreting demographic patterns that influence real estate preferences.
Now, let's dissect the intricacies of the article on the 2022 American Home Size Index and its implications on the housing market during the COVID-19 pandemic.
American Home Size Index Overview:
1. Shift in Housing Preferences:
- The COVID-19 pandemic has significantly influenced housing preferences, driving a shift towards larger homes and a relocation trend from urban to suburban and rural areas.
2. Data Source and Sample Size:
- The data for the American Home Size Index comes from the analysis of 506,374 listings of houses and condos for sale on Zillow, conducted by American Home Shield.
3. Overall Trend - Larger Homes:
- According to Census Bureau data, the average size of new homes in the United States has increased by more than 1,000 square feet since 1973, signaling a consistent trend towards larger living spaces.
4. Regional Disparities:
- The index highlights regional disparities, indicating that fast-growing tech hubs in the Rocky Mountains boast the largest homes, while high-density coastal cities have the most expensive real estate.
Specific City Findings:
1. Colorado Springs, CO - No. 1 City for Largest Homes:
- Average Home Size: 2,760 square feet.
- Employment growth of 5.3% from 2017 to 2021 contributed to increased demand for larger homes, driven by new high-income workers.
2. Top 10 Cities with the Largest Homes:
- The list includes cities like Aurora, CO; Raleigh, NC; Henderson, NV; Fort Worth, TX; Nashville, TN; Austin, TX; Albuquerque, NM; Omaha, NE; and Charlotte, NC.
3. Aurora, Colorado - Second Place:
- Average Home Size: 2,451 square feet.
- Employment growth of 5.7% from 2017 to 2021 stimulated demand for new housing.
4. Raleigh, North Carolina - Third Place:
- Average Home Size: 2,366 square feet.
- Described as a fast-growing, well-educated area with flourishing wealth, creating a demand for larger homes.
In summary, the American Home Size Index provides a comprehensive view of the evolving housing market landscape during the COVID-19 pandemic, with key insights into regional variations and the factors influencing the demand for larger homes in specific cities. This information is crucial for understanding the dynamic interplay between economic growth, employment trends, and housing preferences in different regions across the United States.
