Housing shrinkflation refers to the trend of decreasing home size and quality while prices stay the same or even rise. For example, a 2,200-square-foot home today may cost as much — or more — than a 2,500-square-foot home did just five years ago, despite offering less space and fewer features.
It’s similar to how the money you’d spend on a base-model car today might’ve bought you a midrange model around fifteen years ago.
Beyond the frustration of getting less for your money, it forces tough choices about how to adjust your lifestyle to fit this new reality. This shift is playing out across the U.S., as shrinking average home sizes and rising housing costs lead many Americans to rethink how to meet their housing needs.
To further understand how this trend impacts lifestyle and storage choices, SelfStorage surveyed 1,004 Americans to explore how they are adapting.
Key Takeaways
- 76% of Americans say housing shrinkflation is killing the American Dream, traditionally defined by homeownership, financial stability, and upward mobility.
- 25% have delayed home purchases due to shrinkflation, as high prices and reduced value force many to put off major life goals.
- 37% are willing to accept smaller living spaces, reflecting how rising costs reshape expectations around comfort and stability.
- 18% have downsized or moved in with others to afford housing — a sign that shared or reduced living arrangements are becoming a financial necessity for more Americans.
- 35% say homeownership now feels significantly less attainable, likely driven by fears that the cost of owning a home could create long-term financial strain.
25% of Americans Delay Buying Homes Due to Shrinkflation
Major life milestones, like buying a first home or relocating for a new job, often signify growth and new opportunities. However, housing shrinkflation is causing many Americans to delay these important steps, with 1 in 4 postponing home purchases.
For those struggling with this trend, it’s not just the financial strain — it’s the emotional toll of deferring dreams like homeownership and facing uncertainty around their housing stability. In response to these emotional and financial pressures, many people are rethinking their priorities when choosing a place to live. This includes:
- 37% willing to accept smaller living spaces to save money
- 33% prioritizing affordability over location or amenities
- 22% valuing proximity to work or school over size and price
- 21% focusing more on sustainability and energy efficiency
These shifts could highlight a broader change in what ‘home’ means to this generation, as rising costs and shrinking options push them to focus on practicality and affordability over traditional homeownership dreams.
Downsizing and Shared Living Become the New Normal for Many Americans
Faced with rising costs and limited space, many Americans are adapting by downsizing their living environments (18%) or moving out of apartments and into shared housing with roommates or family (18%) to stay afloat. These adjustments reflect the growing need to sacrifice space and independence for affordability and stability.
For others, the impact has been even more significant:
- 22% have relocated to more affordable areas
- 8% have sold their homes altogether
Along with the emotional cost of adjusting to a new living situation, there is also the practical challenge of having less space, forcing many to make tough decisions about what to keep. This shift has also led people to rethink purchasing habits, as the need to prioritize essentials replaces the excitement of impulse buys.
When downsizing, more than 1 in 4 people are more likely to hold onto sentimental items, like family heirlooms or hobby supplies, rather than practical ones like furniture or clothing. This could mean that many prioritize what brings comfort and connects them to their past, offering a sense of stability amid change.
However, smaller spaces often force people to choose between what feels meaningful and what’s practical. For the things you want to hold onto but don’t have space for right now, storage units offer a flexible way to keep what matters close and safe from damage.
Fewer Americans See Homeownership as the End Goal
Housing shrinkflation isn’t just changing where people live — it’s reshaping how they plan for the future, especially as the cost of owning a home continues to climb. With 35% of Americans saying homeownership now feels significantly less attainable, and 18% viewing it as a financial burden, many are adjusting their long-term housing goals.
Instead of pursuing traditional ownership, some are planning to downsize, share living spaces, or relocate to more affordable areas — redefining what stability could look like in the years ahead.
For many, this shift is a response to a market that no longer meets their needs. With 55% saying the size and quality of homes within their budget have declined, people increasingly view alternative paths as not just practical, but necessary.
Navigate the Housing Squeeze With Self Storage
As shrinkflation housing trends continue to push people into smaller, more constrained living arrangements, many are finding creative ways to adapt without letting go of the things that matter most.
This shift isn’t just about space — it’s reshaping habits. More people are delaying nonessential purchases (56%), turning to DIY or repurposed items (44%), and buying secondhand (38%).
Others shop budget stores or choose multifunctional furniture to learn how to maximize space in a small house, especially with housing costing more per square foot than self storage.
Letting go of furniture or clothes is one thing, but parting with sentimental items can feel like letting go of a part of yourself. Storage solutions offer a flexible way to hold onto what brings comfort and joy, without overcrowding your home.
If you’re facing similar challenges, explore storage unit options to extend your space and protect what matters most. Whether you need long-term storage or just a bit of extra breathing room, SelfStorage helps you stay organized — without compromising the things you value.
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The survey of 1,004 adults ages 18 and over was conducted via SurveyMonkey Audience for SelfStorage.com, LLC on May 1st, 2025. Data is unweighted and the margin of error is approximately +/-3% for the overall sample with a 95% confidence level.
FAQs
- Smaller square footage: A 1,800-square-foot home today may cost the same as a 2,000-square-foot home did five years ago, offering less space and fewer amenities
- Lower-quality materials: Today’s homes, priced the same as a few years ago, often feature cheaper finishes, like laminate countertops instead of granite, and lack premium materials or landscaping in the yard.
Changing buyer preferences, such as a focus on lower maintenance and more efficient living spaces, are also contributing to the growing demand for smaller homes.
If passed, the bill would empower the Federal Trade Commission (FTC) and state attorneys general to take action against companies engaging in shrinkflation.
