The typical dimension of latest flats within the U.S. registered the biggest Y/Y decline in 2022 as extra studios and one-bedroom items entered the market, in keeping with rental portal RentCafe.

Common residence dimension in 2022 stood at 887 sq. ft. vs. 917 sq. ft. a yr earlier, the portal stated, utilizing information from RentCafe’s sister firm Yardi Matrix. That marks a 54 sq.-ft. drop from 10 years in the past.

This follows two straight years of will increase in common residence dimension, throughout 2020 and 2021, when builders adjusted floorplans to accommodate dwelling workplaces amid the pandemic.

“With one of many highest ranges of development in half a century, the yr was marked by the necessity for extra housing throughout the nation,” RentCafe famous.

The share of studios and one-bedroom items reached a historic excessive of 57% of whole flats constructed final yr.

The decline in residence sizes comes as hire value will increase are slowly decelerating, in keeping with January’s Zumper Nationwide Lease Report. The nationwide index for one-bedroom leases fell by 0.3% over the the earlier month to $1,492. In the meantime, the nationwide index for two-bedroom flats had been flat throughout January, it stated.

The South topped the record when it comes to common residence dimension in 2022, at 993 sq. ft. However renters within the Pacific Northwest had the least quantity of area – at simply 776 sq. ft., in keeping with RentCafe’s evaluation.

By way of cities, Tallahassee, Florida, had the biggest flats final yr at 1,182 sq. ft., providing 295 additional sq. ft. in comparison with the nationwide common.

In the meantime, Seattle provided the smallest flats in 2022, at 659 sq. ft. Washington’s tech hub registered a 5% decline in residence dimension when in comparison with 10 years in the past.

Residence REITs embody: Fairness Residential (EQR), Independence Realty Belief (IRT), AvalonBay Communities (AVB), Camden Property Belief (CPT), and Residence Revenue REIT (AIRC).

Earlier, new dwelling gross sales unexpectedly surged in January.