A new report compiled by AV Jennings and BIS Shrapnel have found that homes in South Australia are, on average, the smallest in the nation.
According to the report, the average new home in SA is 192.3 sq m compared to the national average of 253sq m.
Moreover, houses have shrunk in SA by 11.3 per cent over the past 10 years, while houses have grown across the nation by an average of 11.9 per cent.
AV Jennings Homes' South Australian general manager John Howarth said the trend to smaller homes showed what is in store for the state's future housing.
"South Australian homes are using almost a quarter less space for their homes than the rest of the nation," he said.
"I think a lot of it is the availability of land and the change in block sizes which have been reducing significantly in recent times."
Mr Howarth said smaller-sized houses were becoming more popular at AV Jennings Homes as land sizes were reduced.
"It's just the land size they've got," he said.
"The larger blocks are fewer and far between."