You started your home search with a clear picture of what your future home would look like. But once you began looking at homes within your budget, you may have realized they were a little smaller than you expected.

That’s the reality for many buyers right now. Affordability is tight.

But don’t let that discourage you. Choosing a smaller home could actually be a smart move in today’s market, and the benefits may be bigger than you expect. Here are two areas where going smaller doesn’t have to feel like you’re giving something up.

Homebuilders Are Focused on Smaller Options Lately

For starters, smaller homes are becoming more popular right now. In fact, newly built homes have been getting smaller for years. According to the latest Census data, the median size of new single-family homes has been trending downward since 2014 (see graph below).

Why is that happening? Builders pay close attention to what buyers are looking for because they want to build homes that will actually sell. And over the past decade, more buyers have shown that when it comes to home size, sometimes less really is more.

Especially today, when affordability is top of mind for so many buyers, builders are focusing on smaller homes than they did a decade ago. That’s good news because smaller homes are often more budget friendly and can make homeownership feel more attainable. In fact, it’s one reason new home prices recently reached their lowest level in five years.

So if you’re not feeling excited about any of the homes you’re seeing at your price point, it might be worth taking a look at what builders are offering in your area.

You might come across brand new homes that you really love, complete with all the latest features. And when you have modern appliances and updated design, a little less square footage may not feel like much of a tradeoff, especially if the home is move in ready.

Condos Are Opening Up Another Path

If you don’t have many new builds nearby, consider looking into condominiums instead.

For buyers who are trying to make the numbers work, condos can really help ease the budget pressure. According to the National Association of Realtors (NAR), the median price of condos is lower than single family homes in every region (see graph below).

That’s partly because condos are usually smaller, and less square footage often means a lower price tag. That can be a real advantage for buyers who are feeling squeezed by affordability right now, and it’s also one of the reasons condo sales have been picking up.

The number of condos sold actually went up 2.7 percent from just the previous month, and it’s also higher compared to last year, according to the National Association of Realtors (NAR). Ali Wolf, Chief Economist for New Home Source, shares why more buyers are choosing this option.

““In addition to favoring smaller floor plans, more consumers are showing a willingness to live in an attached home. This shift is not driven by a preference for shared walls, but by a pursuit of value.”
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— Ali Wolf, Chief Economist for New Home Source

The Community Does Some of the Heavy Lifting

Here’s why going smaller might still make sense for you. Whether it’s a condo community or a neighborhood of single-family homes, the right place can give you a lot of amenities in exchange for a bit less square footage.

A lot of these communities are designed so that your home is just one part of where you actually live your life. Master planned neighborhoods often come with things like walking trails, pools, fitness centers, co-working spaces, and outdoor hangout spots, giving you extra amenities that really extend your living space beyond the walls of your home.

No dedicated office at home? There might be a co-working space just a short walk away. Need a place to work out? You could already have a gym right in your community. Amenities like these can make choosing a smaller home feel less like a sacrifice and more like a real lifestyle upgrade.