Data from the US Census Bureau seems to support that, when times are tougher, homes get smaller.  According to this data, the average size of a new single-family home shrank noticeably, particularly in the Northeast, by about 200 sq. ft. to 2,529. While some might think that this is a reaction to the years of Mc-Mansion building which has taken place, the Census Bureau says otherwise:  home sizes apparently declined in the recession of the early 1980’s as well (quoted source: David Crowe, chief economist of the National Association of Home Builders). According to Philadelphia economist Kevin Gillen, vice president of Econsult Corp., “…that buyers are also having fewer children, so they need less space…” but they are also looking for more energy-efficient homes.  The larger number of first time home buyers (who can’t afford a bigger home) has also influenced the trend. 30 years ago, the average home was 1,700 sq. ft. Source - a RISMEDIA posted article, June 26, 2010