Navigating the Downsize Dilemma: Finding a New Home with Less Square Footage
Homebuilders in the United States are responding to rising interest rates by constructing smaller homes in exurban areas. With mortgage costs increasing, builders are reducing square footage and offering more compact designs to keep monthly payments affordable for buyers. This trend is transforming traditionally spacious exurbs into higher-density communities with smaller single-family houses. Builders are reconfiguring floor plans and community designs to meet buyers' affordability needs. The average size of new homes is expected to decline, with more duplexes and small-lot single-family homes being built. The shift towards smaller homes is driven by the need to maintain affordability in the face of rising borrowing costs.