For years, bigger was better. Builders often tried to put as much square footage on a lot as they possibly could because that was what buyers wanted—and what the market rewarded. But I believe we are beginning to see a real shift.

As Millennials move into their prime home-buying years, I am seeing more buyers place less emphasis on sheer square footage and more value on the land and the lifestyle that comes with it. They want the pool, the sport court, room for children and dogs to run, great outdoor entertaining spaces—in essence, their own private “country club” at home. I would argue that many would rather have a beautifully designed 5,000-square-foot house on a wonderful lot than 7,000 square feet with very little yard left over.

That shift could have a lasting effect on how we think about price per square foot. Land is becoming increasingly valuable, particularly in our best neighborhoods. I remember when an additional acre attached to a property was often valued at a discount to the first acre. Today, in some of the deals I am seeing, that extra land can command a large premium. Builders who continue to focus only on maximizing interior square footage may be missing where the buyer is headed.

And there is one more number I am watching closely this month: inflation. The August Consumer Price Index will be released September 11, just days before the Federal Reserve meets September 15–16. A hotter-than-expected inflation number could put upward pressure on Treasury yields and mortgage rates—even if the Fed itself does not raise its benchmark rate.

Real estate is always changing, but this feels like more than a momentary trend. Buyers are redefining what luxury means, and increasingly, it may be less about how much house you can fit on the lot and more about how much life you can live on it.