All this is causing builders to redraw their blueprints. After reducing prices on their current inventories of unsold homes, the next step is to “start building to a new market. That new market is a lower price point at a smaller size. To the extent they can do it, they will,” said Kermit Baker, chief economist at the American Institute of Architects.
Over the past three decades, prosperity and a demand for space to accommodate home theaters, offices, gyms and palatial kitchens has pushed up the average size of newly constructed single-family homes by nearly 45% even as the size of the average family has declined. Last year, according to the Census Bureau, the median size of a newly completed single-family home reached 2,248 square feet, up from 1,560 square feet in 1974.
The expansion continued into the first quarter of this year, with the median home size inching up to a near-record 2,302 square feet. But it slipped to 2,241 square feet in the second quarter, and many analysts think a broader decline may be in the offing.
Jeffrey Mezger, chief executive of Los Angeles-based KB Home, said the change has been “driven by data on what our home buyers want and what they can afford in a new home.” Mr. Mezger estimates that the average size of a newly built KB Home today is 2,200 square feet, 200 square feet less than before the shift in sentiment took hold
wow
10% reduction in size, leads to 10% reuction in cost/price,
and in Florida?
David Raidman, 37 years old, moved into his 2,760-square-foot lake-front home in Fort Pierce, Fla., last fall in the first phase of a gated community developed by Lennar Corp. of Miami. Mr. Raidman said he was told that his home would be surrounded by similarly sized and priced homes. But when he heard Lennar was planning to build much smaller homes in his neighborhood, he and other homeowners fought the company’s plans.
Although Lennar agreed not to build the smallest of its new models — at just 1,326 square feet — next to the larger ones, the home builder has continued with its plans to downsize.
I know quite a few families of four that are living in 3000+ sq foot houses.
I have to ask WTF? Do you really need all that space? It ends up being nothing but alot of open space to heat/cool and alot of surfaces for your maid to clean.
My friends master suite/bath/walk in closet/retreat are at least 3/4 of the size of my whole 1100 sq foot house….
Nowhere else in the world do you have such waste as we do here. It is going to be our undoing and Americans used to such waste are going to have a very hard time adjusting to
the new paradigms.
Take a look at Ikea sometime, their showroom models of 350aq and 650sq homes show how much one can do with a little imagination and ingenuity.
Have you ever seen the McMansion story on 60 minutes? You had couples living in 8000 sqft homes and their only regrets were that they didn’t build it larger. The amount of gluttony is unbelievable.
I was looking at some 5000 sqft model homes in Pacific Highland ranch and I overheard this lady with just ONE kid telling the agent that the homes were nice but with one kid now and possibly a second that 5000 sqft wouldn’t be enough and they will need a larger home. I just stood there in disbelief. The poor husband who was a total tool and definitly didn’t wear the pants in the house but was the only earner just stood there and nodded.
Waste and excess consumption will be the failure of the USA
I live in a tiny 600 square foot apartment and would love a 1500 square foot home. That would be plenty big enough. I dont want to hire a maid or spend all day cleaning a McMansion.
I live in a neighborhood with an ave size house about 3000k sq ft. I know people that purchased these houses 2-3 years ago and they still don’t have formal living and formal dining room furniture!! I guess they over spent….lol
I forgot they don’t have window coverings either, just sheets hanging over the windows…..
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