Standard Wall Framing for Drywall
In a typical home standard wall heights are 96 3/4″ to 97″ depending on the moisture content of the framing material. In most construction wall framing you will have a single base plate and double top plate with 92 1/4″ pre-cut studs. As with all things in construction, there is a very good reason for these dimensions and the resulting total wall height. If you are using 1/2″ drywall you will have 1/2″ on the ceiling and 2 – 48″ wide horizontal sheets on the wall for a total of 96 1/2″. This leaves 1/4″ t0 1/2″ of space below the drywall board at the floor.
This spacing is critical and must be allowed for. On average, walls shrink in height about 1/4″ and if you do not allow for this space and fit your drywall boards tight from ceiling to floor, the pressure on the horizontal joint will likely cause unsightly problems, possibly causing plaster to crack, tape to separate and bulging, or all three problems. When properly installed, with the top board tight to the ceiling and the lower board tight to upper board the two sheets can move down with the wall framing as it shrinks – this will ensure the drywall joints remain free from pressure as the wall shrinks preventing any bulges and related problems at the joints.
See the image below for details on this required spacing:

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