Why some new Illinois homes are getting smaller

Expect fewer hallways and more nooks that work as "pocket offices " or pet rooms in newly built homes across the country.

Why it matters: Builders and architects say they're using every square foot of space as many shrink houses to cut costs.

• "All that Tetris we played in the '90s has finally paid off," experts at John Burns Research and Consulting wrote in a recent report surveying industry pros nationwide.

State of play: In the northwest suburb of Huntley, Lennar is building homes that measure 1,500 square feet , featuring open floor plans and dens tucked off the foyer, for over $400,000.

• Similarly petite homes are underway in Harvard, located about two hours northwest of Chicago, geared toward empty nesters seeking " compact luxury " living, Crain's reports.

The big picture: Large homebuilders such as Lennar and D.R. Horton are churning out smaller houses , partly to attract first-time buyers .

• It's about "affordability," D.R. Horton CFO Bill W. Wheat told analysts earlier this year.

By the numbers: The national median new home price held steady at $417,300 in June from a year earlier, Census Bureau data shows.

• Compare that with existing home prices, which recently hit a new high of $426,900, per the National Association of Realtors .

The latest: Over a third (38%) of U.S. builders say they constructed smaller houses last year, and 26% plan to go even smaller this year , according to the National Association of Home Builders.

• The downsizing comes as high interest rates have hiked costs for both buyers and builders.

What's next: Starter homes might look cramped with tighter kitchens and outdoor spaces , John Burns Research and Consulting found.

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