trying to find a smaller home to buy. I couldn't, had no choice but to buy something bigger than I wanted if there was to be a yard for the kids to play in. Builders in my city don't build small SFH on decent sized lots, and I hear that's a problem everywhere.

The smaller SFH "starter homes" in my area have been creating insane bidding wars for years now, the price per SF just gets jacked sky high so if go up 1000 SF you are just getting a way better deal, way lower price per SF. Builders have NOT been building nearly enough small SFH on medium/large lots for decades now.