“Bigger is proving itself not better”

For the first time in nearly 14 years, the median size of a new single family home decreased to 2,215 square feet from 2,277 square feet in 2007, according to the US Census Bureau. Since 1991, houses for single families have been consistently getting bigger and bigger, mirroring the housing bubble and good economic conditions. Those good economic conditions are now over and we are dealing with an ever-changing market. Builders are scrambling now to re-work conceptual drawings with a downsized foot-print with less living space. The National Association of Home Builders found in a survey earlier this year that 9 out of 10 builders are putting up smaller homes, a trend that has accelerated since May 2008. There are a few reasons why homebuyers are attracted to a smaller house in the present state of today’s economy. One reason is most homebuyers are first time homebuyers. They are making the jump from an apartment or a friend’s house to their own piece of the American dream. These potential homebuyers do not want or need a 4,000 square foot “McMansion”. With a larger home comes with larger maintenance and upkeep expenses—something that most first time homeowners are not ready to deal with, especially when they are used to having these issues taken care of as a renter. Another major reason for the spike in smaller home sales is the attractive energy costs. Air conditioning a large home is a large bill to pay every month. While high ceilings and walk-in closets are nice, many do not want to air condition wasted space. Besides the common sense understanding that a smaller house equals fewer costs, it is my opinion that the market crash has been a reset button for most Americans. Everyone has been living way beyond their means and it took a major economic disaster to open everyone’s eyes to the fact that going into debt to have a larger more extravagant home does not always make for a good investment. It is good to see the general public getting back to what is important and scaling back from an inflated lifestyle to one that is more reasonable and responsible. It is nice to have luxuries in life, but never at the expense of forgetting that which we take for granted.