Record High Levels of Empty Bedrooms in US Homes
The United States is experiencing an unprecedented surge in empty bedrooms, reaching the highest levels ever recorded since the U.S. Census began tracking this data in 1970. A new report from Realtor.com reveals a staggering 31.9 million extra bedrooms in 2023, a significant increase from 31.3 million in 2022 and a fourfold jump from the 7 million recorded in 1980. This surge is attributed to a combination of factors, including larger homes and shrinking household sizes, sparking a debate about the implications of this trend for the housing market.
Key Takeaways:
- Unprecedented Surplus: The US has more extra bedrooms than ever before, reaching a record 31.9 million in 2023.
- Shrinking Households: The average household size has dropped to a record low of 2.5 persons in 2023, down from 3.1 in 1970.
- Regional Disparities: Excess bedrooms are most prevalent in the Mountain West and South due to larger homes and available land, while urban areas show the opposite trend.
- “McMansion” Era Legacy: The rise of larger homes during the “McMansion” era (1980s onwards) significantly impacted the number of bedrooms, raising questions about potential overbuilding.
- Economic Implications: The affordability of homes with extra bedrooms impacts the distribution of excess space, with cheaper areas showing higher rates of extra rooms.
The Rise of the Extra Bedroom: A Deeper Dive
The Realtor.com report highlights a fascinating paradox in the American housing market: a shortage of homes for sale coupled with a surplus of unused space. The number of extra bedrooms – defined as bedrooms exceeding the number of residents, even accounting for a home office – provides a striking indicator of this phenomenon. This increase isn’t simply about bigger homes; it’s also a consequence of smaller households. The average number of people per household has steadily declined over several decades, contributing significantly to the growing number of empty rooms.
The McMansion Era and its Impact
The building boom of the 1980s and beyond, often referred to as the “McMansion” era, saw the construction of significantly larger homes. This era played a crucial role in expanding the average number of bedrooms per home. While the average has increased from 2.5 rooms in 1970 to 2.8 in 2023, growth has stagnated in the last decade. This suggests that while the trend toward larger homes contributed significantly, other factors are now at play in shaping the current surplus of extra bedrooms.
Shifting Demographics and Household Sizes
The decline in household size is a significant driver of this trend. As families become smaller, fewer people occupy larger homes, leading to a higher number of unused bedrooms. This shift is influenced by various societal changes, including delayed marriage, fewer children per family, and an increasing number of single-person households. The affordability of owning larger homes is an important factor as well (see below). The report notes that “We are seeing more guest rooms for two main reasons: homes getting bigger and household size getting smaller,” says Ralph McLaughlin, senior economist at Realtor.com.
Regional Variations in Excess Space
The distribution of excess bedrooms isn’t uniform across the United States. The report reveals significant regional differences, with the Mountain West and South exhibiting the highest proportions of extra bedrooms. This is largely attributable to factors such as lower land costs, allowing for larger homes with more rooms.
Top 10 Markets with the Highest Share of Excess Bedrooms: A Closer Look
Some of the major markets with the highest share of excess bedrooms includes: Ogden, Utah (12.2%), Colorado Springs, Colo. (12.1%), and Salt Lake City, Utah (12%), illustrate this trend. These areas, characterized by relatively lower housing costs and larger home sizes, contribute significantly to the national surplus.
Bottom 10 Markets with the Lowest Share of Excess Bedrooms: A Contrast
In contrast, urban centers like Miami (5.9%), New York (6.5%), and Los Angeles (6.6%) have significantly lower proportions of excess bedrooms. These markets are often characterized by higher housing costs and smaller living spaces, reflecting different housing demands and affordability constraints.
The Debate: Overbuilding or Changing Preferences?
The sheer volume of extra bedrooms raises a crucial question: has the United States overbuilt in recent decades? The increase in larger homes, coupled with the shrinking household size, fuels this discussion. McLaughlin’s statement that “If people value having extra space, then we didn’t overbuild during the McMansion era. But if homebuyers are simply tolerating these big homes because they’re what’s available, then perhaps we did overbuild a bit over the past few decades,” perfectly encapsulates the ongoing debate. Further research is clearly needed to understand whether this surplus reflects genuine preference or a mismatch between supply and evolving household needs.
Implications for the Housing Market
The high number of empty bedrooms has significant implications for the housing market. It suggests that while a shortage of homes exists, the available housing may not entirely meet changing demands. The current trend raises a number of important follow-up questions that must be answered. How will the ongoing trend of smaller households impact homebuilding in the future? Will builders adapt to these changing demands by constructing more smaller, efficient homes, or continue producing larger units, leading to a further magnification of the problem?
With a clearer picture of household composition and preferences going forward, the construction industry can adapt its building practices. Policy makers can also consider measures to improve the affordability and availability of housing stock that more accurately reflects the changing needs of American households.
Conclusion
The record-high number of extra bedrooms in US homes presents a complex and multifaceted issue. It is a blend of shifting demographics, evolving home-building practices, and broader economic trends. An in-depth understanding is crucial for navigating the current housing market challenges and planning for future housing needs. Future research into factors driving smaller households and evolving consumer preferences is essential for informed policymaking and strategic planning in the US housing sector.
