That depends on the resolution size your monitor is set at. I bet your new monitor is about twice as large as what you're accustomed to.
That's perfectly normal and expected behavior.
Is by any chance your new monitor one of those newfangled Retina screens?
Yes, you nailed it! After reading a few other threads I realized retina is likely what is causing the issue. The best solution I have seen so far is just working in 200% zoom mode. Any other suggestions or a better, more permanent solution?
…Any other suggestions or a better, more permanent solution?
A different, new machine?
Or… change your monitor resolution.
Haha, thanks. Actually I found a setting when I right-click the desktop icon and view properties called "open in low-resolution". That seemed to have fixed the problem, even though all the buttons in photoshop are now a bit grainy, the actual images look normal size and are still high-resolution (not blurry like when I zoomed to 200%).