In 1982, 40% of the country's newly constructed houses were entry-level homes. By 2019, the annual share had fallen to around 7%.. The reasons
1) The rising price of land
2) Zoning regulations that discourage increased housing density
3) Labor costs are up due to labor shortage.
4) High price of building materials.
And, on top of all of that, buyers are looking for luxury amenities. When I was a kid there were 4-5 of us in a 1400sq ft 3 bedroom 1.5 bath colonial. My mother lived in Queens with her mom, brother, and grandparents in a 760 sq ft house. How do we get away from only building affordable housing and luxury housing? What about something in the middle? Read More about the housing shortgage here https://www.npr.org/2021/09/04/1033585422/the-housing-shortage-is-significant-its-acute-for-small-entry-level-homes