After some success, firms are trying out cheaper offerings in markets across the nation.
While houses are getting larger, home builders are trying to keep properties affordable for first time buyers, Bloomberg reports.
Several national home building companies, including Meritage Homes and Tri Pointe, are testing cheaper homes in markets from Florida to California.
“The recovery in the move-up segment is getting long in the tooth -- there are only so many buyers who can pay $400,000 and above,” Drew Reading, a home building analyst for Bloomberg Intelligence, said. “The main concern in 2016 and beyond is that affordability is becoming a bigger issue.”