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Published: Oct 04, 2022 5 min read
An Oversized Percentage Sign Behind A Small House
Money; Shutterstock

Homebuyers in many U.S. markets are being forced to settle for smaller homes as they confront the realities of rising mortgage rates and high asking prices.

The median-size home considered affordable to buyers with $3,000 monthly housing budgets shrunk in the past year by more than 100 square feet in most of the 50 largest markets, according to a new analysis by real estate brokerage Redfin.

Assuming the average bedroom is about 130 square feet, that means, in some cities, folks who could have afforded a three-bedroom home a year ago can now only afford a two-bedroom in the same location.