This desert metro has one of the largest declines in family size

Household sizes are declining across the country, and one popular spot for vacationers and vacationers is standing out.

It is the Lake Havasu City – Kingman, AZ metro, where the average price is $400,000.

The National Association of Realtors® issued new research identifying the metro as the place where average household size has shrunk the most over the past decade.

In 2014, the average household size in the area was 2.47, but by 2024 this had fallen to 1.96 – a drop of 20.6% over the past decade.

From a residential perspective, this trend indicates an increasing demand for smaller homes and homes designed for one- or two-person households.

“As households shrink, the market needs more housing for the same number of people. So even if population growth is modest, housing demand can remain solid as more people form their own households,” says NAR senior economist. Nadia Evangelou tells Realtor.com®.

This shift can be attributed to several factors.

“If there are smaller households in an area, it usually means fewer traditional family households and more people living alone or with fewer family members,” Evangelou says. “Lake Havasu has a high proportion of older residents, and that tends to reduce family size as more people live alone or downsize later in life.”

Evangelou says more and more people in Lake Havasu are also getting older.

“A large percentage of the buyers I work with are retirees, singles, couples without children or second home owners,” says Lake Havasu real estate agent Lew Jabroknown as “Havasu Lew” tells Realtor.com. “Years ago, more homes were built with full-time families in mind. Today, many homes are built for part-time or lifestyle use, with more emphasis on garage space and open-plan living areas than on traditional living spaces. That matches the type of buyer who comes to the market.”

Jabro says what brings people to the area is “usually retirement, early retirement, remote work or people leaving more expensive or congested states.”

“Snowbirds tend to be more price sensitive and maintenance conscious. They are often looking for a simpler home, a smaller footprint and less maintenance,” he says.

According to Jabro, empty nesters are a staple of the Lake Havasu market. “Many are selling larger homes out of state and moving to something that is easier to maintain,” he says. “I also work with buyers who are moving after a spouse dies. In those situations, it’s often about simplifying expenses and being closer to adult children, family or an existing circle of friends.”

The Lake Havasu lifestyle

Lake Havasu City is such a sought-after retirement destination because of its relatively affordable cost of living, year-round sunshine and warm weather, and plentiful outdoor activities such as boating and hiking.

“In the summer market, many buyers are boaters or second-home buyers, and they will often accept a smaller home if the garage is good: boat deep, camper depth, storage space and easy access,” Jabro says. “For them, the size of the house is secondary to the garage and how the property fits into the way they use Lake Havasu.”

Located along a wide stretch of the Colorado River, Lake Havasu is a reservoir created by the Hoover Dam and offers approximately 60 miles of navigable waterways and 400 miles of shoreline.

The lake is known for its sandy beach areas and wide range of water sports, but it is also home to London Bridge, which was famously moved from London and reconstructed across the river in the 1970s. Visitors will also find 27 replica lighthouses along the coastline.

Family size is also decreasing in Jackson, MI

Although Lake Havasu City is widely known as a center for retirement, Evangelou notes that shrinking households are driven not only by retirees, but also by a series of demographic shifts.

In Jackson, MI, for example, where the median sales price is $234,900, single-person households are also increasing.

“The shift is coming from working-age adults, especially those aged 25 to 44, due to delayed marriages and fewer households with married couples in that area,” she says.