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Elizabethtown Today
By the People, for the People
U.S. Households Shrinking, With Some Cities Seeing Bigger Declines
Aging population and declining birth rates drive nationwide trend, though a few metros buck the trend.
Published on Feb. 24, 2026
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U.S. households have been shrinking in size over the past decade, with the average household size falling from 2.65 people in 2014 to 2.50 in 2024. This trend has been seen across the country, but some metro areas have experienced more dramatic declines than others. The top 10 metros where households have shrunk the most include places like Lake Havasu City, Arizona and Hilton Head, South Carolina. Aging populations and younger adults forming families later are cited as the main drivers behind the nationwide decline in household size. However, a handful of metros like Anniston-Oxford, Alabama and Merced, California have actually seen household sizes grow over the same period.
Why it matters
The shrinking of U.S. households has significant implications for the housing market, as demand shifts towards smaller homes and living spaces. This trend could disrupt traditional housing development and lead to changes in the types of homes being built to meet evolving consumer preferences. It also suggests that overall housing demand may remain high even without large population gains, as households split into smaller units.
The details
According to a report by the National Association of Realtors (NAR), the top 10 metros where households have shrunk the most between 2014 and 2024 are: Lake Havasu City-Kingman, Arizona (-20.6%), Hilton Head Island-Bluffton-Port Royal, South Carolina (-18.6%), Odessa, Texas (-18.3%), Flagstaff, Arizona (-17.8%), Watertown-Fort Drum, New York (-15.1%), Tuscaloosa, Alabama (-15.0%), Jacksonville, North Carolina (-14.9%), Elizabethtown, Kentucky (-14.4%), Laredo, Texas (-14.2%), and Houma-Bayou Cane-Thibodaux, Louisiana (-14.0%). The main drivers behind this nationwide trend are an aging population and younger adults forming families later in life.
- The average U.S. household size fell from 2.65 people in 2014 to 2.50 in 2024.
- In 1965, the average U.S. household had 3.31 people; in 1975, it had gone down to 2.94 people.
The players
National Association of Realtors (NAR)
A trade association that represents real estate agents and brokers in the United States.
Nadia Evangelou
Principal economist and director of real estate research for the National Association of Realtors.
What they’re saying
“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.”
— Nadia Evangelou, Principal economist and director of real estate research, National Association of Realtors
The takeaway
The shrinking of U.S. households, driven by an aging population and changing family formation patterns, is a nationwide trend that could have significant implications for the housing market. Developers and policymakers will need to adapt to meet the evolving demand for smaller living spaces in many parts of the country.
