Better, Not Bigger: Why Smaller New Homes Are In—And What Buyers Want Moving To Nashville, Tn

Better, Not Bigger: Why Smaller New Homes Are In—And What Buyers Want

Better, Not Bigger: Top Home Design Trends Shaping New Builds

Apr 4 • 2 min read

After a brief uptick in 2021, the average size of new homes is trending down again—slipping from 2,479 sq. ft. (2022) to 2,411 sq. ft. (2023), the smallest average in 13 years. Buyer preferences are shifting, too: according to NAHB’s What Home Buyers Really Want , today’s shoppers are aiming for roughly 2,070 sq. ft.(down from about 2,260 sq. ft. two decades ago).

“It’s tied to two linked factors,” notes Rose Quint, NAHB assistant vice president of survey research. “Buyer preferences are changing and housing affordability has worsened in recent years.”

How Builders Are Responding

38% Built smaller homes in 2023 to support sales
26% Plan to build even smaller in 2024 and beyond
$427,400 Median new-home price in 2023 (down ~7% vs. 2022)
$394,600 Median existing-home price in 2023 (up ~1% YoY)

Beyond trimming square footage, builders are helping buyers bridge affordability with price adjustments, sales incentives, and more cost-conscious finish packages—without abandoning quality.

Personalization Over “Copy-Paste” Design

Buyers want homes that feel uniquely theirs. As designer Donald Ruthroff (AIA) observes, homeowners value authenticity—things like furniture-style kitchen islands, upgraded cabinetry, and higher-quality flooring that set their space apart from the neighbor’s.

Most-Wanted Home Features

Across plans and price points, these features rise to the top of buyers’ wish lists:

  • Laundry room
  • Patio
  • ENERGY STAR® windows
  • Exterior lighting
  • Ceiling fans
  • Garage storage
  • Front porch
  • Hardwood flooring
  • Full bath on the main level
  • ENERGY STAR® appliances
  • Walk-in pantry
  • Landscaping
  • Table space in the kitchen

Smart & Efficient Systems on the Rise

Technology- and efficiency-forward features continue to gain traction, including:

  • Security cameras & wired home security systems
  • Programmable thermostats & multizone HVAC
  • Video doorbells
  • Whole-home energy management systems

Fast-Growing Favorites (Past Decade)

  • Quartz/engineered-stone kitchen countertops
  • Lighting control systems
  • Outdoor fireplaces & outdoor kitchens
  • Built-in kitchen seating
  • Exposed beams

Bottom Line

“Better, not bigger” is the theme: right-sized floor plans, efficient systems, and personalized finishes. For buyers, that means more livability per square foot. For builders, it’s a practical path to deliver value without sacrificing design.

A woman in a blue shirt and blue cardigan is smiling in front of a brick wall.

Susan  Thetford

As a Nashville native, real estate agent, and retired general contractor, I bring a unique perspective to home buying and selling. My background allows me to help clients understand a home’s true potential, costs, and value—beyond what meets the eye.


With my mother-daughter real estate team, we provide a seamless, client-first experience with personalized service and expert guidance.

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