Americans increasingly live in smaller households. The average has slipped from 2.67 people in 1990 to about 2.5 today, the continuation of a century-long decline. Meanwhile the number of households is growing faster than the population itself, as people spread out into more, smaller homes. This guide charts the shrinking American household and explains the social shifts behind it — and why they matter for housing.
How big is the average household?
The average U.S. household now holds about 2.5 people, down from 2.67 in 1990 and far below the four-plus of a century ago. It sounds like a small change, but across a nation of well over 130 million households, every fraction of a person represents millions of people living differently than before. The line drifts steadily downward, a quiet but relentless demographic trend.
Why households are shrinking
Several long-running shifts shrink the household. Lower birth rates mean fewer children per family. People marry later or not at all, and more live alone — single-person households are now one of the most common types. Higher divorce rates split one household into two, and a large, long-lived elderly population means many older adults live by themselves. Rising prosperity also plays a part: when people can afford their own space, more of them choose to live separately rather than doubling up.
More households, smaller homes
The second chart shows the flip side: the number of households has climbed steadily, growing faster than the U.S. population. That's the arithmetic of shrinking household size — the same number of people, divided into smaller groups, needs more separate homes. It's a key reason housing demand keeps rising even when population growth slows: a country can need millions of additional housing units without adding many people, simply because everyone wants their own place.
What it means for housing
Shrinking households quietly drive the housing market. More, smaller households means demand for more housing units — and a shift toward smaller homes, apartments, and one-bedroom living. It strains the supply of starter homes and rentals, and it's part of why housing shortages persist even as population growth cools. Builders and cities that assume housing need tracks population growth miss this hidden driver: how Americans group themselves matters as much as how many there are.
Frequently asked questions
What is the average U.S. household size?
About 2.5 people, down from 2.67 in 1990 and well below the four-plus of a century ago — the continuation of a long decline.
Why are American households getting smaller?
Lower birth rates, later marriage, more people living alone, higher divorce rates, and a large elderly population living independently all shrink the average household.
Is the number of households growing?
Yes — the number of households is rising faster than the population, because the same number of people split into smaller groups needs more separate homes.
How does household size affect housing demand?
Smaller households mean more housing units are needed for the same population, driving demand even when population growth slows and contributing to housing shortages.
How many households are there in the U.S.?
Well over 130 million, a number that keeps climbing as households shrink and people spread into more, smaller homes.