While many people have a specific dream home in mind, it’s important to purchase a home that is safe, well-built, and within a mortgage you can afford.
Housing is where the majority of Americans spend their income, and prices are on the rise. Affordable housing has trended toward smaller homes due to the many associated cost savings. As of September 2024, the median listing price per square foot in Texas is $187, reflecting a 35.8% increase over seven years.
So, what size house is best for you? First, determine how many people will live in the house full-time. Next, consider the monthly expenses for your home, including mortgage, insurance, and utilities. Balancing these factors will help you determine the ideal size for your new house.
What exactly is a “small house”? The average house in the United States is 2,500 square feet. Anything below that is considered “smaller.” (This differs from tiny homes, which are generally 500 square feet or less.)</p?
A small house can be an excellent option for those interested in minimalism, energy conservation, downsizing and specifically, first-time homebuyers. Small homes allow young individuals to experience all the responsibilities involved with homeownership without breaking the bank.
Heather Higgins, a New York based designer who frequently handles projects in the 1,000-square-foot range, says, “Requiring less time, energy, and money, smaller living spaces provide greater lifestyle flexibility.”
In addition to freeing up time, smaller homes offer numerous benefits:
Some people believe “bigger is better,” while others have reservations about smaller houses. Below are common hesitations and solutions:
In 2024, newly built homes got smaller for the first time in decades. Home sizes peaked in 2021 when the pandemic forced many people to work from home and additional space was needed. According to the U.S. Census Bureau, the average square footage of new housing units dropped from 2,500 square feet in 2021 to 2,300 square feet in 2024.
Stagnant wages, coupled with rising building and labor costs, are driving homeowners toward smaller homes. In Texas, where the minimum wage has remained $7.25 per hour since 2009, economic pressures are significant. For instance, in Houston, a standard no-frills bathroom sink cost $44.24 in 2022 but increased to $48 by 2024.
Less square footage translates into big savings. To calculate potential savings, add up your current monthly housing expenses (mortgage, utilities, insurance, and maintenance). Compare this total to what you’d spend on a larger house by doubling or tripling the amount. The difference shows how much a smaller home can benefit your finances.
A home’s size doesn’t limit its potential for comfort or style. Many no-cost and low-cost strategies can make a small home feel spacious and luxurious:
Interior designer Dustin Gerken of Dustin Gerken Design says, “One of the most valuable commodities in a residence is floor space. Use the illusion of spatial depth to your advantage by pulling furniture off the wall to add shadow and gradient to the wall behind it.”
Visit both Houston Habitat for Humanity ReStore locations to find great deals on beautiful new items for your home. Stock is always revolving to check often!
In short, yes. Increasing costs and a stubborn housing market have made smaller houses more appealing. While it might not be your forever home, buying a smaller house is a crucial step toward greater financial stability and future housing options.
Everything possible in a large house is an option in a smaller home! First-time homebuyers benefit from lower prices that require smaller down payments and monthly mortgage payments. A smaller home leaves more room in your budget for higher-quality furniture and home improvements. You can invest in durable, long-lasting items rather than cheaper alternatives, saving you more money in the long run. Using creativity and a little bit of the ever-increasing savings made from this decision, the design and feel are completely up to you. Reduced utility costs are also a major benefit – air conditioning a smaller home during Houston’s summer heat can add up to big savings!
Plus when you get ready to sell your home, you are in a positive financial position. Home prices typically depend on the square footage and size of the house. Smaller homes often attract a broader range of buyers due to their affordability, making them more likely to sell.
Virtually tour some of our Habitat Homes, explore the possibilities, and start your journey toward homeownership today.
Though officially established in 1976, Habitat for Humanity International traces its roots back to Koinonia Farm in southern Georgia. Founded by Clarence Jordan, this Christian farming community focused on equality, resource sharing, and stewardship of the land.
In 1965, Millard and Linda Fuller, seeking a path of Christian service, visited Koinonia, where they developed the concept of “partnership housing” alongside the Jordans. This concept empowered families in need of adequate shelter to work with volunteers to build affordable houses.
The houses were sold without profit, and no interest was charged on loans. Funds from house payments and donations were directed into a revolving fund called “The Fund for Humanity,” which supported future builds. In 1968, Habitat laid out 42 half-acre house sites, with a community park serving as a recreational space. These affordable homes marked the beginning of the global housing ministry known today as Habitat for Humanity.
After success at Koinonia, Millard Fuller gathered supporters in 1976, formally establishing Habitat for Humanity International. The organization is grounded in faith and hard work, aiming to address issues of poverty housing. The Fullers’ model of partnership housing flourished and spread internationally, ensuring families worldwide could build and buy decent homes.
One of the most transformative moments in the organization’s history occurred in 1984 when former U.S. President Jimmy Carter visited a Habitat build in New York City. The build site did not have enough volunteers and work was slow. Carter and his wife Rosalynn Carter, took action and recruited a few dozen people to help in the effort. With Carter’s help, the stalled project gained traction, and 19 families moved into new homes. Carter’s involvement led to the launch of the annual Jimmy & Rosalynn Carter Work Project, further raising Habitat’s profile and helping build affordable houses in North America, Latin America and the Caribbean, Africa, Eastern and Western Europe, and throughout the Asia-Pacific region.
Habitat for Humanity is truly an integral part of the city of Houston’s history. Founded in 1987 by Carl Umland, the organization’s first house was completed a year later and Ms. Dorothy Howard moved in with her eight grandchildren. A landmark achievement occurred in 1998 during the Jimmy & Rosalynn Carter Work Project, when 100 homes were built in one week—an unmatched record.
Houston Habitat has also contributed to disaster relief efforts following hurricanes like Katrina, Rita, and Harvey. Their most recent project is Robins Landing, Houston’s first affordable housing master-planned community, which highlights the organization’s mission to address the city’s affordable housing crisis.
“We know we can’t build our way out of this crisis,” said Houston Habitat CEO Allison Hay. “But we can role-model good behavior for others. Our mission is about the homebuyer. If Habitat can do it, others can too.”
Beyond housing construction, Houston Habitat operates ReStore, a home improvement store that sells donated furniture, construction materials, and appliances at a fraction of retail prices. Profits from ReStore directly support Habitat’s mission to build and repair homes in Houston. Donations of materials and volunteering remain integral to the organization’s success, allowing more families to achieve homeownership and contribute to a stronger community.
According to the National Habitat for Humanity, many ReStores cover the administrative costs of the Habitat affiliate so that 100% of donor funds can be put toward home construction and rehabilitation projects.
From building decent houses to revitalizing neighborhoods, Habitat continues to provide affordable shelter through the collaborative efforts of volunteers, donors, and community partners. Become part of Houston Habitat’s legacy by volunteering, donating, or shopping at ReStore. Every action helps build homes, hope, and a stronger future for those in need.
If you’ve cooked a meal, fixed a car, or hosted a party, you know planning makes for a better outcome. The same is true for building houses. Habitat for Humanity has made it a priority to make homes sustainable and resilient for families.
Two strategies are especially applicable to Houston: creating energy efficient homes and resilient construction. Houston Habitat for Humanity builds with these goals in mind to ensure homes keep heating and cooling bills low, while also withstanding Houston’s extreme weather eventss. Planning with efficiency and resiliency in mind is beneficial to communities, as it maximizes affordability and allows for easier repair and rebuilding.
Through careful consideration of materials and calculated building methods, Houston Habitat builds energy efficient homes which are also environmentally friendly, safe, and low cost-to-own and maintain for Houston homeowners.
Houston Habitat for Humanity is proud to offer homes with the ENERGY STAR® certification. The ENERGY STAR certification shows your new home has been designed and built to standards well above other homes in the market today. Houston Habitat homes feature better quality, comfort, durability. The ENERGY STAR certification also means your new home is of higher value, and is an increased investment for tomorrow, as this label indicates an improved process of inspections, testing, and verification to meet the strict requirements set by the U.S. Environmental Protection Agency, or EPA. In fact, Houston Habitat for Humanity is so committed to sustainability, we have earned numerous awards for sustainable building practices, including Energy Star Partner of the Year/ Sustained Excellence awards, since 1996.
According to ENERGY STAR, the typical US household spends over $2,000 annually on utility bills. In Houston, the average annual electricity bill is $2,705.04. Homes with ENERGY STAR certification often see 30% energy efficiency savings compared to a standard home – in Houston, Habitat homeowners could save up to $800 a year!
ENERGY STAR certification is better for the environment too. Most electricity comes from nearby power plants, which burn natural gas and coal. A byproduct of this process is the release of greenhouse gases, such as carbon dioxide, which contribute to climate change. The emissions from these power plants also contribute harmful pollutants to the air such as sulfur dioxide, particulate matter, and nitrogen oxides. Reducing the necessary electricity in your home decreases power plant production which lessens damaging emissions.
Wondering how our builders make a home energy efficient? It is a multi-step process. Because Houston experiences heavy rains and persistent humidity, which can damage foundations and structures, gutters are important to redirecting water away. DuPont Tyvek Home Wrap is also used to protect against mold and condensation. Radiant barrier roof decking reflects radiant heat away from the attic, reducing the hours of run time for the air conditioning system. Insulation is rated by an “R” rating; Houston Habitat installs high “R” factor insulation, which also lowers energy consumption and energy bills. Double pane windows are mounted to prevent heat loss, and use of low VOC (volatile organic compounds) paint is a very important aspects of energy efficient Habitat construction.
Habitat for Humanity’s home resiliency connects closely with energy efficient building practices, as its aim is to keep homes affordable. Hurricanes, floods, and other natural disasters are unavoidable, but we can utilize materials to protect our homes.
Houston Habitat utilizes Fortified standards as one of the ways to keep home maintenance affordable long term. The Fortified program is a listing of construction recommendations from the Insurance Institute for Business and Home Safety which can dramatically reduce the damage a home suffers in a storm. Some examples are anchor bolts and oriented strand boards to protect against strong straight-line winds, which arrive during thunderstorms. Also used are hurricane straps, which secure the frame of the roof to the rest of the house and reduce the chances of the roof being removed by high winds. In an interview with Allison Hay, Chief Executive Officer at Houston Habitat for Humanity, she specifically noted that Robins Landing “homes will be elevated, our homes will have hurricane straps that will keep them from hurricane winds. We want to ensure that Robins Landing is resilient.” Habitat also offers homeowner resources, technical assistance and training to improve the resilience and durability of their homes.
As an international organization, Habitat for Humanity is committed to prioritizing climate resilient housing throughout the world. As a local organization, Houston Habitat for Humanity works to build a Houston where everyone has a place to call home; we also strive for sustainability and resilience for our homebuyers and our planet through build and repair methods to our work recycling, upcycling and reusing with the community through Habitat ReStores. We carefully consider FEMA Flood mapping (seen here) and the ever-evolving Houston Flood map (seen here) when selecting where to build in Houston.
Resilient and energy efficient communities boast many features outside of residential buildings which work towards the mission. One very important aspect, especially for Houston, is the use of retention ponds. These ponds are not for swimming or fishing, rather they serve as a holding place for stormwater when it falls quickly and heavily. These detention basins store this water instead of allowing it to flow as it falls, turning into damaging floodwaters. This temporary pond holds water until the channels can safely carry it away. Because Harris County is quite flat, most stormwater storage has to be created. New developments, such as Robins Landing, often use retention ponds to keep residents and their homes safe from harm.
Here are five ways you can reduce energy consumption at home right now.
The mission of Habitat for Humanity is to build and improve the places people call home.
By committing to careful planning, Houston Habitat creates energy efficient and resilient houses which are affordable through reasonable mortgages and lowered maintenance costs in Houston, Texas. Learn more about Houston Habitat’s homeownership program today!
