The Largest Market for Housing is 2 Bedrooms or Less

Demand for Small Household Housing is a Largely Unmet Need

How Many Bedrooms Does the US Housing Market Need?

1 Bedroom or Studio

Almost 65% of household sizes were 1-2 persons in 2022. So singles and couples can live comfortably in a studio or one-bedroom. 

2 Bedrooms

Singles or couples with children of the same sex and roommates. So up to 4 people could live in a two-bedroom home. 78% of households could live in a two-bedroom house. 

3 Bedrooms or more

The remaining 22% would require a three-bedroom or more home. This allows for families with boy-girl combos to have separate bedrooms. 

 The Historical Breakdown by Household Size

Let’s look at the distribution of household sizes in the United States over the years. According to the data from Statista, here’s how household sizes have changed from 1970 to 2022: 

• In 1970, approximately 28.92% of households were two-person households.
• By 2022, this figure increased to 34.72%, indicating a trend toward smaller households.

Here’s a visual representation of the distribution of household sizes over time:

Household Size Distribution.

The existing housing inventory is too large, according to statistics at Statista

Single-person households have become more common, reflecting changes in customs and traditions. Families are now typically more nuclear, whereas multigenerational households were more prevalent in the past. Additionally, declining fertility rates contribute to smaller household sizes.

Interestingly, Utah has the largest average household size among U.S. states. This is likely influenced by the predominant Mormon population, which encourages large families and tight-knit communities.

Changing Household Size Impacts

Household size plays a crucial role in shaping housing and infrastructure planning. Let’s explore how:

Urban Planning and Infrastructure Costs: Economies of Scale:

Municipal and related services often exhibit economies of scale up to a certain point. Higher population municipalities tend to achieve efficiency gains due to a larger demand for services. However, beyond a certain threshold, further population growth may lead to diminishing returns in terms of infrastructure efficiency.

Infrastructure Planning: 

As the world’s urban population is predicted to double by 2050, planning for housing and infrastructure becomes critical. Services like water supply, energy, and digital connectivity require meticulous planning to meet the growing demand.

Housing Density and Infrastructure Costs: Density Impact: 

Housing density directly affects infrastructure costs. While higher density can lead to more efficient use of resources (e.g., shorter utility lines, reduced transportation distances), it also places additional demands on infrastructure systems.

Transportation Infrastructure: 

Household size influences transportation infrastructure. Smaller households may rely more on individual cars, leading to increased road congestion and parking requirements. Larger households might use public transit or carpooling, affecting transit planning and road design.

Affordability and Housing Supply:Affordability: 

Smaller households often seek smaller housing units like apartments or condos. Meeting this demand requires planning for affordable housing options.
Land Use: Household size affects land use patterns. Smaller households may prefer denser urban areas, while larger households might seek suburban or rural settings. Planners must balance land use to accommodate diverse household preferences.

Social and Community Infrastructure: Community Centers: 

Household size impacts the need for community centers, schools, and recreational facilities. Larger households may require more community spaces, while smaller households might prioritize different amenities.

Healthcare Facilities: 

Healthcare infrastructure planning considers household size. Larger households may necessitate more clinics and hospitals, while smaller households might rely on outpatient services.

Environmental Considerations: Resource Consumption: 

Household size influences resource consumption (water, energy, waste). Planners must account for these variations in infrastructure design.

Green Spaces: 

Larger households may benefit from nearby parks and green spaces, promoting well-being and community cohesion.

Summary

Understanding household size trends and their implications is essential for effective housing and infrastructure planning. It involves balancing affordability, resource efficiency, community needs, and environmental sustainability.