I like almost all of this. I have one minor concern, the maximum home size is dropping from 6750 to 2500 square feet. Which is probably fine for a nuclear family, but in my neighborhood, such homes are largely occupied by multigenerational families. In areas closer to colleges and universities, those homes end up being shared by large groups of students. Both of these populations will take a hit under this policy.
Post-War homes (e.g. after WWII) in America were intended for the nuclear family and were typically under 1000 sq/ft. Most 60s and 70s ranch homes were 1200-1700 sq/ft and considered spacious.
A modern 2500 sq/ft house is at a minimum 3 bedroom, 3.5 bath, and a bonus room.