Smaller Homes are coming on the market

Smaller and More Affordable Homes: Builders are reducing the square footage of new homes and using less expensive materials to keep costs down. This makes new homes more competitive with existing homes, which are still in short supply.
Incentives for Buyers: Builders are offering incentives like mortgage-rate buy-downs to help offset the impact of rising interest rates.
Success with First-Time Buyers: These strategies seem to be working, as the percentage of first-time buyers purchasing new homes is increasing.
Overall, the housing market is changing, and builders are adjusting their approach to meet the needs of today's buyers.