Today's buyers, are willing to trade size and amenities for far lower prices. But they're extremely specific about what they want to keep. Buyers welcome houses half as big as the models that reigned at the peak, as long as they offer plenty of bedrooms. They also don't miss the formal living and dining rooms if KB provides a "great room" combining the two in one open space that includes a generous-sized kitchen.

Considering how high energy prices of 2008, this should serve people well in terms of heating and cooling costs. The trend of smaller homes aren't changing soon, considering competition from foreclosures the expected mortgage rate increase are factors many focus on.

U.S. New Home Sales Housing Trends

• Smaller new homes king. The trend toward more compact new homes is being driven partly by the fact that more customers are first-time buyers who have less credit to spend.
• Home builders are responding by offering smaller designs with features such as high ceilings and large windows that create a spacious feel and options that let buyers personalize the model they choose.
• Smaller home models assisted in achieving a 62% increase in year-over-year net orders in the 3Q 2009
• Median square footage of new homes dropped 9% from a peak of 2,300 square feet in 3Q 2006 to 2,100 square feet during July-September 2009. according to data from the National Association of Home Builders.
• For builders, smaller, less-expensive homes mean less profit. But the industry is already facing strong competition from a high supply of foreclosed homes selling at comparatively low prices.