Title: The Rise of Compact Living in the US Housing Market Robert Lanter resides in a 600-square-foot house in Redmond, Ore., symbolizing the increasing difficulty of finding a house under $300,000. Lanter's small home, along with the trend of downsized living, reflects the future of American housing. With economic, demographic, and regulatory factors fueling the shift to smaller, affordable homes, developers are responding to the demand for more accessible housing. For buyers like Lanter, these compact homes offer a chance at homeownership in the face of soaring housing costs. The trend is reshaping the housing market and challenging traditional notions of a middle-class lifestyle. While homes under 500 square feet represent a small percentage of new homes built in the US, they are part of a clear trend towards smaller designs driven by market demand and changing regulations at the state and local levels. Word count: 191