most people with kids would like a larger yard, but new developments just aren't built with big lots. the developer maximizes his income by wedging in as many homes as possible, so lots have to go small. all new developments are like this (except the really nice homes)
so, the real supply and demand question becomes do you demand a newer home with a small yard or an older home with a larger yard. I spend a lot of time looking at homes for sale in different places where we're considering moving and in the middle class market this really is the main question. I just can't find new homes with big yards in most places.