Home prices and mortgage interest rates may have been reduced to record lows but the stringent policy imposed by the lenders make it almost impossible for potential home buyers to get their own homes. But why aim for bigger homes which require more down payment and definitely higher mortgage which is more difficult to obtain these days when you can settle for smaller homes?

Take a look at the smaller homes being built by the Fort Worth, Texas-based company D.R. Horton. Donald Tomnitz, the firm’s chief executive officer, said these homes are not only smaller but they also cost less so they are ideal for first-time home buyers who do not have enough funds to finance bigger and more expensive homes.  These homes are already revolutionizing the home industry in Portland and Seattle and have become popular among residents because they are not only cheaper but can compete with the price of foreclosed homes.

Tomnitz said while smaller markets like Albuquerque are on the rebound the larger markets like Florida remain weak.