Zillow Declares Shrinkflation: $1M Homes Get Smaller

▤ Summary

Sales of homes costing $1 million more than doubled over the past three years, but they are getting smaller in size, according to a new analysis by Zillow. Floor plans grew in just two major metros: by a closet in Minneapolis (36 square feet), and by at least a room and a half in St. Louis (406). Overall, home sales were elevated during the pandemic, but have slowed in recent months as affordability challenges have pushed many buyers to the sidelines. The recent move of the market toward rebalancing has shifted competition away from mid- and high-tier properties and back to the most affordable homes. Boston and other major East Coast metros had relatively low appreciation over the past three years compared to other regions.

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