"2024 Home Trends: Smaller, Cheaper, and In-Demand Features"

The American housing market is experiencing a shift towards smaller and more affordable homes, with median new-home sizes decreasing by 4 percent in the past year. This trend is driven by the critical shortage of starter homes, making it difficult for first-time home buyers to enter the market. Home builders are prioritizing smaller, more affordable options, with townhouses becoming increasingly popular. However, the overall housing shortage and rising borrowing costs continue to pose challenges for potential buyers, prompting local governments to rethink zoning laws and land-use policies to address the issue.