Americans’ Homes Are Shrinking—but Their Dogs Aren’t

Americans may be paying more for smaller homes than in the past, but they are not giving up on their beloved large dogs.

More than 65 million U.S. households currently own at least one dog, making pooches the nation's most popular pets, according to Forbes. 

For homebuyers, owning a large dog like the perennially popular golden retriever can mean hefty costs and tough trade-offs.

Over the last decade, the typical American home has gotten smaller yet pricier. In July 2016, the median home measured 1,927 square feet at $127 per square foot, according to figures from Realtor.com®. By July 2025, the median home size had shrunk to 1,852 square feet at $231 per square foot.

"U.S. homes have trended smaller in recent years, driven by rising land and construction costs, affordability challenges, and changes in household composition," says Realtor.com senior economic research analyst Hannah Jones.

"As square footage grows more expensive, buyers increasingly prioritize functionality over size, favoring open layouts, multipurpose rooms, and efficient storage rather than excess space."

But having to contend with tighter living quarters has not convinced Americans to give up on their favorite four-legged friends.

So why is that the case? Experts agree that it largely comes down to this: Most pet owners simply value their furry companions more than having extra space.

"Fifty to 100 square feet more will not bring you the same happiness your labrador will!" Ali Smith, CEO and founder of dog training business Rebarkable, tells Realtor.com. "I think a lot of dog guardians truly believe that dog is worth more to their lifestyle than their home."

When it comes to America's widely favored breeds, rankings vary. According to an annual report put out by Rover, a company specializing in pet care, the most popular dog breed of 2025 was a mixed breed, followed by Labrador retriever, golden retriever, Goldendoodle, and German shepherd. 

Rover’s list differs from the American Kennel Club's latest ranking, which found that the diminutive French bulldog managed to hold on to the top spot for the third consecutive year. However, the Labrador retriever clinched the No. 2 spot on AKC’s 2024 list, followed by the golden retriever, the German shepherd, and the poodle. 

House hunting with a hound

When looking for a home to purchase, buyers bring agents lists of must-haves—and dog owners often put their pets’ comfort at the top.

"Pets are one of the first questions I ask about when discussing a buyer’s potential home search," says Cara Ameer, real estate broker at Coldwell Banker Vanguard Realty in Florida. "How many, what kind, and what size they are. I always ask if a yard and its size are also important." 

Ameer says she has had several buyers with large dogs over her 23-year career, and generally they prioritize outdoor space to make sure their pooch has plenty of space to run around.

"I would say the yard size has been the primary driver of home selection for people with pets, especially larger dogs, so if the home has cost more money because of it, they have gone with that," says Ameer, "or in some cases chose a lesser home with a better yard because they wanted their dog to be better accommodated."

Ameer recalled that a few years ago, she had a client who was moving from central Illinois to Florida for a job and was seeking to purchase a home with a pool and a large backyard for their two dogs—one larger and one smaller.

In the end, the client ended up spending $50,000 more than originally budgeted to secure a home with a sprawling backyard, even though the property came only with an above-ground pool, not an in-ground one he was hoping for at the outset.

"So there are trade-offs and sacrifices people make when buying a home that factors in their beloved pets in the mix," says Ameer.

Tania Jhayem, a real estate agent and investment specialist with Urban Nest in Las Vegas, says that pets' needs take precedence especially for those clients who do not have children, so when shopping for a home, they often take into consideration their four-legged pals' build.

For owners of larger breeds, the home search can become limited because many HOAs have strict rules limiting the size and weight of pets, Jhayem points out.

"If their fur baby exceeds the maximum limits, they would not be able to purchase a home in that particular community," says Jhayem.

According to the agent, another important consideration for buyers with large dogs is space.

"They may look for a larger home with a larger yard to give their doggie some room to run around and play," she says. "Because land space is more valuable in Las Vegas, many buyers end up paying more for a larger home and/or yard than originally intended."

For house hunters on a budget who cannot afford a home large enough for their sizable pooch, Jhayem says she would look for a neighborhood with a public park where the dog could get its exercise and socialize.

The agent says she recently had a buyer who had to up their $550,000 budget by $75,000 to purchase a home with a yard large enough to accommodate their dog, Waffles.

"In the end, although it was higher in price, they were willing to pay more to make sure their baby had enough room to run around and play, and they still had enough space for their family," says Jhayem.

Small home? Big dog? No problem!

Having a smaller home does not mean you cannot take good care of your oversized canine.

Smith, the professional dog trainer with Rebarkable, lives with her German shepherd in a second-floor apartment. While she does not have a yard, she makes it work thanks to a conveniently located park.

"My dog [is] absolutely healthier and happier than a lot of dogs who have yards," she says. "It’s all about the guardian's devotion to the dog and willingness to meet their needs."

Dr. Liza Cahn, veterinarian at Embrace Pet Insurance, explains that the degree to which a big dog can successfully adapt to living in a small space largely depends on the breed, with certain herding breeds, such as border collies and Australian cattle dogs, typically requiring significant outdoor space and hours of intense physical exercise to stay healthy.

But Cahn says that many other larger breeds can thrive in smaller homes, "as long as their owner is committed to providing opportunities for physical exercise and mental stimulation."

Dr. Jamie Richardson, head of veterinary medicine at Small Door Veterinary, notes that besides the breed, factors like a dog's age, energy level, and health matter far more than square footage.

"A laid-back Great Dane may thrive in an apartment, while a young border collie might need more space and exercise," she says. "Regular walks, playtime, and mental stimulation are essential, with or without a backyard."

Costs of caring for a large dog

According to a recent report from Rover, the lifetime costs of owning a dog range from roughly $16,000 for a small pooch to over $52,000 for an hulking canine. 

Costs vary widely based on breed, size, and health conditions, with larger dogs usually being more expensive over time. 

It’s worth keeping in mind that the average lifespan of a healthy dog is 10 to 13 years. 

Upfront costs of bringing a puppy home can be as high as $4,420 for a larger breed, with annual costs topping $5,200. Those include money spent on food, treats, gear, vet visits, training, dental care, pet insurance, and toys.

That means owners of large dogs should set aside an average of about $430 each month for their "fur babies"—on top of their monthly housing expenses.

For context, according to Realtor.com data, as of July, the typical monthly payment on the median-priced $439,450 home at the current 6.5% mortgage rate is roughly $2,222 (assuming a 20% down payment and excluding taxes and insurance). 

Richardson says that Americans' enduring affinity for bigger breeds is not going anywhere, regardless of the state of the housing market at any given time.

"Many people prioritize their bond with their dog over having extra space," says Richardson. "Large dogs bring companionship, security, and motivation to stay active. Even in smaller homes, owners can meet their dog’s needs with regular walks, dog park visits, and enrichment activities."

According to the veterinarian, large-breed dogs are commonly associated with loyalty, protection, and family life, and while it does cost more to feed and care for them properly, she says many people consider their dogs as family members "and are willing to budget for them."

"The emotional benefits often outweigh the financial strain," Richardson notes.

Cahn concedes that larger dogs do "eat significantly more" than their smaller-sized counterparts and may be predisposed to costly medical conditions such as hip dysplasia and bloat, but she stresses that there is no such thing as one ideal breed.

"Rather, it’s about finding a matchup of temperament and lifestyle," says Cahn. "The popularity of these [larger] breeds likely stems from their playful and affectionate personalities, history of working alongside humans, general comfort around children, and ability to participate in an active lifestyle."