Why some new Denver homes are getting smaller

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

Why it matters: Many builders and architects say they're using every square foot of space and shrinking 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.

Zoom in: Major home builders like TriPointe Homes, Lennar and DR Horton are leaning into compact houses and townhouses featuring open floor plans with office and flex space in the Denver region.

• Take Candelas Townhomes , a new-build community in Arvada. Most layouts are under 2,000 square feet.
• The main living floor has virtually no hallways — it's one open kitchen, living and dining area, with a bathroom off to the side. In some layouts, there's an office nook right off the kitchen.

The big picture: Large homebuilders 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 .

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