The mortgage shrinkflation era
Housing affordability in the U.S. has become shrinkflation with a mortgage attached. Builders can trim square footage to protect the monthly payment illusion, but the clearing price of actual shelter capacity has reset violently higher.
The post-2020 shock left buyers paying more for each foot. At the same time, the median new home gradually got smaller, suggesting the affordability crisis is being absorbed through living space before it shows up as a full nominal price capitulation.
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I’m glad to see house sizes start to shrink. It’ll be a positive trend long term.
Are those new builds only or existing home sales too?