PHOENIX — Arizona's real estate market is again leading the nation, this time for how much less home you're getting for your money.
According to a recent Zillow report, Phoenix saw the most significant reduction in size in the average million-dollar home in the country.
The report found the average size of a million-dollar home dropped from 4,049 square feet in 2019 to 2,933 square feet last quarter.
"I'll walk into a house, and in my mind, it's $750,000, but really it's a million-dollar house," Trevor Halpern, CEO of Halpern Residential at North&Co., said. "As prices have increased, you are getting less home for the dollar."
While the million-dollar price range is making headlines, local real estate analysts say the size reduction is happening everywhere.
"It bridges all price ranges from $200,000 to $2 million," Halpern said.
"What they are showing in greater Phoenix is that appreciation rate," Tina Tamboer, a senior housing analyst with the Cromford Report, said.
According to the Cromford Report, homes in the $200,000-$300,000 price range have lost nearly 500 square feet on average in the past three years, dropping from around 1,600 square feet to about 1,100 square feet.
Despite the changes, Tamboer said the median home in the Phoenix market has not changed and is still around 1,700 square feet. However, the median price costs a whole lot more.
"The budget in 2019 would have been $275,000. Today your budget is $465,000," Tamboer said.
"What used to be a $400,000 home is now $650,000. What used to be $650,000 is now $850,000 or $900,000," Halpern said.
Recently, prices have begun to drop since the high in May. However, experts say they do not expect us to get back to 2019 levels of price or average home size in those ranges.
VERSIÓN EN ESPAÑOL: 'Lo que solía costar una casa de $400,000 ahora vale $650,000': Los analistas de bienes raíces dicen que la 'reducción de tamaño' está sucediendo
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