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Taking a Bite Out of McMansions
February 1, 2009 by James K Barath, CMPS · Leave a Comment
Smaller Is Better
Goodbye to McMansions and, hello to the Mini Mac, as Americans turn to ‘right-sized’ homes. Recent research suggests that homes being built today are getting smaller. According to the U.S. Census Bureau, the average size of homes started in the 3Q08 was 2,438 square feet, down from 2,629 square feet in the 2Q08. Similarly, the median size of homes started in the 3Q08 was 2,090, down from 2,291 in the 2Q08. The statistics confirm what the housing industry has suspected, America’s housing demands are downsizing.
Gayle Butler, editor-in-chief of Better Homes and Gardens, said for many homeowners, it is not so much downsizing as “right-sizing”, giving up big homes with unused space for homes that better fit their needs.
As homes get smaller, home-owners are economizing the space they do have. Butler says she is seeing more interest in “Wii-sized spaces.” Other features high on the list include flexible family rooms that accommodate a variety of activities, from video games to fitness systems, and outdoor kitchens and entertaining areas.
According to a survey conducted by the magazine, 32% of the 733 potential new-home buyers participating said they expected their new home to be either somewhat smaller or much smaller than the one they already own.
“Either by necessity or choice, they’re willing to take a step back from the McMansions,” Butler said.
Other housing trends include:
Simpler Elements
Consumers say they need fewer luxuries in their next home. 20% or more of the participants in the survey viewed upgraded landscaping, granite countertops, and luxurious master suites as less important, 35% graded high ceilings as less important.
Going Green
The Better Homes and Gardens survey said 90% of those surveyed are planning to have energy-efficient heating and cooling systems and 31% plan to have geo-thermal heat. “The green theme touches everything in the home, from the food we look to consume, our health concerns in the home, building — even our furnishings in the home,” said Robin Avni, senior director and consumer strategist for the firm Iconoculture, a cultural trend research firm.
According to the National Association of Home Builders, 88% of builders surveyed in January said that they are building or planning to build a larger share of smaller homes and 89% said they’re planning on building more lower-priced models.
About the Author: James K Barath is a Certified Mortgage Planning Specialist, qualified liability advisor and your FHA Home Loan Expert. He is also a graduate of Purdue University, The CMPS Institute, Dale Carnegie Human Relations Course & Napoleon Hill Foundation's PMA Science of Success Class. It's your home and your future. It's his profession and his passion. He is ready to work for your best interest. Contact James Barath today for your Borrow Smart Analysis - the CALM Approach to Borrowing ! His Motto: I Facilitate the American Dream Through Responsible Mortgage Lending and Financial Literacy! 