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We usually focus on population growth to capture trends: who’s moving where, which metros are gaining residents, which ones are losing them. But some demographic changes aren’t about how many people live in a market; it’s about how they live, and household size is an indicator of how many people live in a house.

Nationally, the average household size fell from 2.65 people in 2014 to 2.50 in 2024. That’s a meaningful change in just a decade. It may sound small, but when household sizes shrink, it changes the math of housing demand, since the same number of people may need more homes as households are less crowded.

While household size is trending downward almost everywhere, Lake Havasu City–Kingman, Arizona, showed the largest decline. Specifically, in 2014, the average household size in Lake Havasu City–Kingman was 2.47. By 2024, it fell to 1.96. That’s a 20.6% decline in just 10 years.

When a metro drops below two people per household on average, it’s an indicator that solo living and smaller households are becoming more common in the market. A combination of factors can explain this trend. A larger share of older households, more retirees, and more “empty nesters” can lead to this change over the years. And from a housing perspective, this also translates into stronger demand for smaller homes and homes that work well for one- or two-person households.

Meanwhile, this can also mean that overall housing demand may stay active even without large population gains. If household sizes shrink, more and smaller households can form from the same population, creating ongoing demand for housing units, rentals, and turnover in the market.

Why Are Household Sizes Shrinking?

For various reasons: Aging is a big part of it. As people live longer, more older adults live alone after a spouse passes away, after divorce, or simply because they choose to age in place by themselves. At the same time, we are also seeing younger adults marrying later in life, with many households delaying having children or having fewer kids overall. As a result, one-person households have increased, furthering the trend of fewer people per household.

Housing costs also affect household size in both directions. In some expensive metros, higher rents and home prices encourage “doubling up” – roommates, multigenerational living, or adult children staying longer. But in many affordable markets, a smaller household size can be more feasible. So, depending on the market, declining household size can reflect both lifestyle shifts and/or affordability conditions.

Where This Trend Shows Up Most Often

We have seen big drops mostly in parts of the South and West – including several markets that attract in-migration and those with aging populations. Larger metros (like Austin, TX which fell from 2.70 to 2.36) but also older industrial metros (like Albany–Schenectady–Troy, NY which fell from 2.44 to 2.19) also experienced large changes. The reasons may vary by market, but the direction is the same. That’s why this trend is worth highlighting: It’s not just a “retirement-market story,” and it’s not just a “big-city story.” It’s a national household-formation story, and it changes how we should think about the type of housing that’s needed.

The Exceptions: Metros Defying the National Decline

However, a few metros are moving in the opposite direction, and these markets are worth highlighting because they are so rare.

Anniston–Oxford, Alabama, is one example. In this market, the average household size increased from 2.45 in 2014 to 2.52 in 2024 (about a 2.9% rise). Other examples include Merced, CA (2.35 in 2024), Punta Gorda, FL (2.23 in 2024), Spartanburg, SC (2.59 in 2024), and Stockton–Lodi, CA (3.18 in 2024).

When household size rises, it often suggests something different is happening locally: more families with children, more multigenerational households, or economic conditions that encourage people to live together rather than separately. The key point is that these “increase metros” are the exception. Most of the country is trending toward smaller households, while only a small set of metros are heading in the opposite direction.