A decade-long trend in the U.S. housing market reveals new single-family homes are 11% smaller yet 74% more expensive per square foot. Rising costs for land, labor, materials—exacerbated by tariffs and worker shortages—are forcing builders to reduce home sizes while maintaining price points. Studies cite the impact of tariffs adding over $100,000 to new home costs in some states. The construction industry faces a critical labor shortfall, with nearly half a million workers needed to sustain demand. Industry leaders emphasize adopting strategies to retain affordability amid these pressures.