Housing shrinkflation is here to stay. New homes are 11% smaller but 74% more expensive than a decade ago

(Credit: Getty Images—Allen J. Schaben / Los Angeles Times)

• Home buyers are paying more for smaller homes, a phenomenon called shrinkflation. A new LendingTree study found new single-family homes have shrunk 11% in the past decade, while their price per square foot has jumped 74%. Driven by surging land, labor, and material costs (compounded by tariffs and worker shortages), builders are trimming square footage and eliminating wasted space like hallways.

Just like how serving sizes at restaurants feel smaller, yet more expensive, a similar phenomenon has hit the housing market. Shrinkflation—essentially getting less for more—is plaguing nearly every housing market region in the U.S.