Are You Paying for Space You Don’t Use? How Wasted Square Footage Drains Your Wallet

In a world where real estate is often your biggest expense, are you really using the space you’re paying for?

Most Americans aren’t.

In fact, a landmark study by UCLA’s Center on Everyday Lives of Families (CELF) found that families routinely use only 40% of their home's space. That means you could be paying a mortgage, utilities, taxes, and insurance on rooms you rarely step foot in.

At ReachFi, we’re all about helping you see the long-term financial effects of everyday choices. Let’s break down why wasted space matters and what it could mean for your future wealth.

The Hidden Cost of Unused Rooms

The CELF study, one of the most detailed looks at home life in the U.S., used time-lapse photography and tracking to reveal how families actually move through their homes. The results?

Formal living rooms, guest bedrooms, and dining rooms were among the least-used spaces.
Source: UCLA CELF Study, 2012

Meanwhile, U.S. home sizes have ballooned:

• 1973: Average home size = 1,660 sq ft
• 2022: Average home size = 2,480 sq ft

Source: National Association of Home Builders (NAHB)

At the same time, family sizes have shrunk. That’s a recipe for unused, expensive square footage.

Real Dollars, Real Impact

Let’s say you have a 2,800 sq ft home but regularly use just 1,600 sq ft.

That’s 1,200 sq ft you’re heating, cooling, furnishing, and insuring without much use.

Here’s what that could cost:

Now imagine investing even just $1,200/month of those savings instead.

Over 10 years, you could build up more than $210,000 at a modest 7% annual return.

You can run this exact scenario in ReachFi and see how downsizing—or house hacking unused rooms—impacts your financial independence timeline.

ReachFi What-If Demo: Downsizing vs. Staying Put

Meet Aaron and Priya: They’re empty nesters living in a 2,800 sq ft home in Dallas. Their two children have moved out, and they’re wondering: is all this space worth it?

Using ReachFi, they simulate what happens if they downsize to a 1,600 sq ft townhome:

• They save $1,200/month in mortgage, utilities, and maintenance
• They invest the savings at a 7% return over 10 years
• Result: Over $210,000 in new investments — enough to retire 3 to 5 years earlier

That’s the power of a small, intentional lifestyle shift.

The Bottom Line

You may love your spacious home—but if you're rarely using parts of it, you're tying up money that could be accelerating your financial goals.

Whether it’s downsizing, renting out a room, or simply running the numbers, ReachFi helps you see the financial ripple effect of your space.

📚 Citations & Resources:

• UCLA CELF Study (2012): UCLA Newsroom
• National Association of Home Builders: NAHB Home Size Trends
• Average U.S. Property Tax Data: Tax Foundation
• U.S. Home Energy Costs: U.S. Energy Information Administration