The first home Mette Ramanathan and her husband considered buying was a 2,200-square-foot, five-bedroom place. It was too big for the couple, who were interested in space efficiency and lower utility costs.

So they settled on a smaller three-bedroom Cape Cod in Baltimore's Hamilton neighborhood.

The larger house was "not only expensive, but you're using and wasting an awful lot of space," said Ramanathan, who moved in May. "Even if we start a family, we don't need five bedrooms to start a family."

For the first time in nearly 14 years, the median size of a new single-family home decreased in 2008 - to 2,215 square feet from 2,277 in 2007, according to the U.S. Census Bureau. Since 1991, houses for single families consistently have been getting bigger and bigger, mirroring the housing bubble and good economic conditions.

In the Treasure Valley, homebuyers have learned that big homes mean big utility bills, said Jim Powell, a real estate agent with RE/Max Advantage. Clients a few years ago wanted 3,000- to 4,000-square-foot, cathedral-like homes, he said. Today, they're looking in the 2,000- to 2,500-square-foot range.

"People are becoming more green-conscious," Powell said. "I see people being more realistic in their housing."

CBH Homes, the biggest home builder in Idaho, says it has downsized homes in the past few years to meet buyers' needs. CBH now offers homes from 900 to 2,500 square feet, with most toward the lower end of that range, compared with 1,400- to 3,200-square-foot homes three years ago, said Holly Haener, director of sales and marketing.

The shrinkage is "reflective of the economy back then: the stock market, the egos, people trying to compete with their neighbors and people trying to keep up with the Joneses," said Cindy Ariosa, regional vice president for the Baltimore and Southern Pennsylvania region for Long & Foster, a real estate company.

In the past year or so, demand has shifted away from large homes amid the collapse of the real estate market.

Cash-strapped buyers want to contain mortgage and maintenance costs, including rising utility bills, after watching their investments and retirement plans plummet, according to real estate agents and economists.

"When the economy is weak, unemployment is high, income gain is slower or nonexistent, people tend to focus on simpler things, less expensive things," said Kermit Baker, chief economist for the American Institute of Architects.

Another major reason is that market is being fueled by first-time buyers, who are becoming the bright spot in the housing slump. They are being lured by the $8,000 federal tax credit and falling home prices. Novice buyers typically buy smaller homes.

Instead of moving out of Baltimore to buy a larger house, renter Steve Ruckman decided he wanted to remain in his Mount Vernon neighborhood and find a small place to fit his lifestyle. Ruckman, a 30-year-old lawyer, moved into his 1,200-square-foot rowhouse built in the 1800s in July. The square footage includes his tiny backyard.

“I live alone, so being able to keep up a small property is more realistic,” he said. “I didn’t have to make purchases to fill the space.”

Builders are taking notice.

The National Association of Home Builders found in a survey earlier this year that nearly nine out of 10 builders are putting up smaller homes, a trend that has accelerated since May 2008. And more architects say clients are demanding smaller homes, with 50 percent indicating square footage is declining this year, compared with 15.5 percent last year, according to a survey by the American Institute of Architects.