Those are interesting questions about bling, Bugs. I think during prosperous times, yes (like the ’80s) it was the fashion to look prosperous, but then when we had the recession in the early ’90s, the Grunge look was in. Fashion does change, but the problem with a big house is that it can’t really change. It has to stay as big as it is.
I do know that the pre-fab market for houses has gained a little traction during this housing prosperity period because they are a pretty cheap alternative for buyers, and they are generally smaller. There is an awesome magazine called “Dwell” about the whole pre-fab market. The prefabs that tend to be gaining the most ground are the ones that take a modular approach – start small, and then as your family grows, buy another modular component, and add on. They’re pretty cool.
I think the other trend we’ll see going forward is more customization by builders on tract developments. One of the big problems with tracts is that one house doesn’t differ from the next. So, successful builders, or at least ones that want to stay in business, will be forced to offer more differentiation. Maybe going smaller will be one option? There are plenty of single people (or people without kids) that want a house, but don’t need a huge one, and something smaller in a nice development would allow for more potential buyers.