Why some new Denver homes are getting smaller

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.