When it comes to homebuying, millennials prefer quality over quantity. That’s according to a report from the National Association of Home Builders (NAHB), which found that more than half of millennial homebuyers are willing to compromise on square footage if a house has better features.

Millennials, also known as Generation Y, generally refers to people born between 1981 and 1996. According to NAHB, individuals polled from that demographic cohort said they want a median of 2,408 square feet of interior home space — the most of any generation. But 52% of millennials also said they would rather buy a smaller house than one that lacks their desired amenities.

And construction trends reveal that homes are getting smaller. NAHB cites U.S. Census Bureau data showing that the median size of a home constructed in 2024 was 2,150 square feet. In 2023, the median size of a completed single-family home was 2,233 square feet, according to Census Bureau data.

NAHB believes that home builders are constructing smaller homes because of lingering housing affordability concerns among prospective buyers.

“Buyers are willing to make compromises to find the best possible home for their families,” said NAHB Chairman Buddy Hughes, a North Carolina-based home builder and developer, in a press release. “Our nation’s builders are willing to meet buyers where they are and construct a high-quality home to meet their family’s needs.”