The historically unaffordable housing market has led builders to start making smaller homes, causing a major shift in prices. New homes, which have typically sold at a premium compared to existing homes since the mid-1980s, are now priced lower. In May, the median sales price for a new home fell 0.9% to $417,400, while the price for an existing home rose 5.8% to $419,300. This trend reflects a shift towards more affordable smaller homes and a lack of supply in the market. Homebuilders are adjusting their product mix to meet consumer demand for smaller, more affordable options. As the $200,000 starter home becomes extinct, first-time buyers are finding it increasingly difficult to enter the housing market. The shrinking affordability of homes across the country is evident in the declining number of homes priced under $200,000.