realestate

US Households Decline, Boosting Guest Room Demand

Many families ready to host guests for the holidays

F
amilies across the country are gearing up to host holiday guests, and many will have ample space to accommodate them. According to a new analysis from Realtor.com's economic research team, both the total number of guest bedrooms in America and the share of homes with extra bedrooms are at record highs.

    Last year, there were 31.9 million extra bedrooms in the US, up from 31.3 million the previous year and more than four times the 7 million in 1980. When adjusted for the increase in total homes, the share of all bedrooms that could be considered guest rooms also reached a record high of 8.8%, more than double the 3.5% rate in 1980.

    "We're in a golden age of extra bedrooms," says Realtor.com Chief Economist Danielle Hale. "The average number of bedrooms per home has increased, and households have shrunk, creating an environment where we see both the largest number of extra bedrooms and the largest share."

    Shrinking household sizes are driving this trend, with the average number of persons per household declining from 3.1 in 1970 to a record low of 2.5 in 2023. This reflects demographic changes, including baby boomers becoming empty nesters and millennials marrying later and having fewer children.

    The Mountain West and South have the most guest bedrooms, where homes are often built with more rooms and square footage due to abundant building space. In contrast, densely populated urban areas tend to have fewer spare bedrooms, with Miami ranking lowest at just 5.9% of all bedrooms classified as potential guest rooms.

    On the other end of the spectrum, Ogden, UT, ranks as the guest bedroom capital of the nation, with 12.2% of all bedrooms classified as potential spare rooms.

Image: Busy hotel lobby with guests checking in, reflecting increased demand for guest rooms.