The average size of new homes in the United States has shrunk to its smallest point in two decades, reaching just 2,404 square feet. This reduction marks a 12% decrease from a decade ago, as families face shrinking living spaces alongside soaring housing prices. The median price for new homes has surged by nearly $112,000, reaching an unprecedented $403,800. As a result, the cost per square foot has jumped to an alarming $168 – a 57% increase from a decade ago. This trend is leaving buyers facing a stark choice: smaller homes or less financial stability. The US housing market remains challenging for average Americans, with only 28% of homes on the market currently affordable for median-income households, down significantly from earlier in the year. This decline comes despite an increase in median incomes over the same period, highlighting the disconnect between income and affordability.