Housing affordability has remained a significant obstacle for prospective new-home buyers. In response to this mounting challenge, homebuilders have embraced the concept of constructing smaller, more compact homes as a means to combat the affordability crisis.

The average square footage for a new home has decreased from 2,468 square feet to 2,374 square feet year-over-year.

Yahoo Finance's Dani Romero breaks down the details, providing insights into what this means for new home prices.

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This post was written by Angel Smith