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> Why can't America make small 2 bedroom homes anymore as seen in 1950s suburbs. It's either a mansion or an apartment now for new housing.

Because it isn't the 1950s anymore. The middle class that was able to afford those homes no longer exists, the rich have gotten exponentially richer, and everyone else has or is increasingly being priced out of housing.

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Not sure I buy that. There are a a fair number of people who would be "middle class" by the definition of being able to afford a two-bedroom house (if there were two-bedroom houses to be had), but who can't afford a large three-bedroom house. (It may be fewer than in the 1950s, but it's a lot more than none.)

And to add on there's lots of people can afford a three bedroom house but it's just too much house which I think was the original sentiment. Of the people who are buyers that I'm directly associated with I'm seeing people who can practically pay cash for a house but they are just not seeing new construction that is appealing to them. It's too much house for a lot of people especially when you think about the long term expenses of owning such a large structure. If there wasn't a demand for good+ quality smaller buildings for people that have the ability to buy the concept of 'downsizing' wouldn't be as much of a thing. These people would happily buy new construction for full sticker but the long-term logistics of managing that property just is not what they want. Even when I was home buying none of these cut-and-paste mansions fit what I need it for and they were so expensive that doing modest customization to them to make them suitable for my needs priced me out. While there are many issues in the US housing market the build/reno as an investment vs. build to suit or reno to suit is certainly a slice.

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