1. Law of diminishing returns
2. land cost being equal
3. demographics
4. building costs
5. Current energy costs and ucertain future
Smaller homes on the same size lot of larger homes cost more per square foot to build because the land cost is equal. Older people, single people, people with disabilities, injuries, etc. need or want smaller homes or single stories. Single stories are more efficient and the sq ft of the stairs is wasted sq ft.
A two story 3000 sq ft and a one story 2000 sq ft (both found in morgan) both have the same roof, foudation, concrete, kitchen, plumbing, driveway, etc. The extra 1000 sq ft is often “dry” space and the costs of the extra lumber and stucco are less than the initial costs. ppsf has always increased as homes get smaller but with energy costs on everyone’s minds these days, I think they will be hit even harder. Regarding morgan in particular, 2000 or 2100 sq ft is the smallest they have, that is fine for many people, fewer people need or want 4000 sq ft so the price decreases per sq after 2000 based on supply and demand, sellers don’t set the price, the buyers do. Fewer people want the big one today with energy and carrying costs increasing, just like fewer people want Ford Excursions.
