As affordability remains a challenge nationally, more buyers are prioritizing affordability and energy efficiency over expanse
By Carrie Dahle
Across the country, the size of newly built homes is shrinking. Rising construction costs, higher mortgage rates and shifting buyer priorities are reshaping the real estate landscape.
More buyers are prioritizing affordability, functionality and energy efficiency over expansive square footage, prompting builders to scale down home sizes to meet demand. This trend reflects not just economic pressures but also evolving lifestyles — many buyers today are looking for homes that offer innovative, flexible use of space rather than unnecessary excess.
But is this movement toward smaller homes taking hold in Ashland? Our local market presents a unique dynamic. While national statistics show a decline in new home sizes, Ashland’s real estate landscape continues to see steady demand across various property sizes.
With its historic neighborhoods, diverse architecture, and high desirability, Ashland doesn’t always follow national patterns. However, affordability is increasingly becoming a key factor in buyer decision-making, which could also influence future trends in home sizes here.
A national trend toward smaller homes
According to the National Association of Home Builders, the average square footage of new single-family homes has declined steadily over the past few years. Affordability concerns are playing a major role, as both material costs and financing rates have increased. More homebuyers, especially first-time buyers, are choosing compact, efficient floor plans that maximize functionality. Open-concept designs, multipurpose rooms, and energy-efficient layouts are becoming the new standard.
Here in Ashland, the real estate market remains strong, but affordability remains a central challenge. The combination of limited inventory, rising prices and high interest rates has made it more difficult for some buyers to enter the market. While we haven’t seen a dramatic shift toward smaller homes yet, buyers are increasingly prioritizing homes that offer efficient layouts, updated features and lower maintenance costs.
As of December 2024, Ashland had 80 active residential listings, reflecting a 21.2% increase from the previous year. This rise in inventory is giving buyers more choices, but sellers are still seeing strong property values.
Median price in Ashland up
The median home price in Ashland rose to $549,500, marking a 13.1% increase from the previous year. Meanwhile, 82 existing homes closed in the last quarter of 2024, compared with 71 in the same period of 2023. This data suggests that despite higher mortgage rates, our local market has steady buyer demand.
For buyers, the increase in inventory means more opportunities to find a home that fits their needs, whether that means downsizing for efficiency or securing a larger home while inventory remains stable. For sellers, continued price appreciation signals demand remains strong, though competitively pricing homes will be key in a shifting market.
Ashland remains a unique market with a blend of historic charm, outdoor access and a strong sense of community that continues to attract buyers. Whether the national trend of smaller homes takes hold here remains to be seen, but one thing is sure: Local buyers are looking for homes that balance function, location and affordability.
Staying informed about market shifts is essential for making the right real estate decisions. Whether you’re buying or selling, understanding these trends will help you confidently navigate the path ahead.
Ashland resident Carrie Dahle is president of the Rogue Valley Association of Realtors and principal broker at John L. Scott, Ashland. Email her at [email protected].
