3 points
WFH is one of the contributing factors to the current housing crisis as people sought more space to be able to do it.
Not saying your idea is wrong, but there is an effect.
1 point
The effect doesn’t seem to correlate to an increase in these smaller houses though. If already housed individuals are seeking to put more money into a larger house that frees up smaller houses for those without the same investment opportunities. Rents and prices should naturally go down if a subset of well off people sought higher quality homes.