Housing Shrinkflation? We witnessed manufacturers reducing quantities to keep prices down during the inflation surges, but now…. Mortgage rates have climbed to 6.86%, their highest level in 3 months after holding between 6% and 7% for most of the past year. This has prompted potential buyers to scale down the size of their ideal home and forego other features to save where they can. In March, the median square footage for newly constructed homes on the market nationally was 2,034sf, down 4.7% from 2,135sf in March 2020. Yes, even on the very high end we are seeing bedrooms shrink from 12ft x 14ft to 11ft x 12ft….. (WSJ +)
05/24/2025