A recent report released by Zillow shows the average million-dollar home in Phoenix has shrunk in size.

The median size of million-dollar homes fell by more than 1,000 square feet from 2019 to 2022.

Mark Stapp is director of ASU’s Center for Real Estate Theory and Practice.

“What you’re doing is you’re trying to combat rising costs by decreasing the overall size of the unit itself, so the cost per square foot may be high,” he says.

Stapp also says competition among buyers even for smaller homes in highly desirable areas will keep pushing prices up.