Home builders are hitting the brakes on new projects in response to a slowdown in housing demand and a surge in inventory. Orphe Divounguy says builders are adapting by shifting focus to more affordable markets where they can still make a profit. He notes that builders are leaning into higher density projects like townhomes and condos, which use less land, and that the median lot size has shrunk by almost 11% since the pandemic. Despite these challenges, he believes the pendulum is swinging in favor of buyers.