American Housing Today Compared to American Housing in the Mid-1950s

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This report on changes in the size and amenities of American houses – a report that features some of the work of GMU Econ alum Jeremy Horpedahl – is fascinating and important. Two slices:

In the past few years, online commentators have repeatedly noted how much more affordable homes were in the 1950s, citing statistics that show back then a new home typically cost about two to three times the median household income, while today one costs about six times the median household income.

They also point out that many families in the 1950s had just one household earner, while today it takes two incomes to afford a typical home.

But those statistics miss some key points. To start, American homes today are larger. Jeremy Horpedahl, an associate professor of economics at the University of Central Arkansas, recently told The Mortgage Note that new single-family homes are twice as big in terms of square footage compared to 1956.

“Believe it or not, it costs roughly the same per square foot,” Horpedahl said.

Beyond that, Horpedahl says it’s all about the amenities. For example, in 1956, only 50% of new homes were equipped with a garage. In 2024, 96% were. The percentage of homes with central air systems and appliances has dramatically increased as well.

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The typical amount of space required to please the average consumer has increased over the course of the last 70 years.

“Three or more bedrooms can accommodate a couple with two kids, which is considered the common family. It affords privacy for everyone in the home,” said Zaphire.  “Plus, people are doing a lot more in their homes – hosting BBQs and family gatherings. The size of homes may have doubled, but the space is being used.”