- JR Hevron - MortgageLoan.com
Wednesday, Dec 1, 2010
In this economic climate, home buyers want smaller homes and itâs not just for the smaller mortgage.
One of the upsides to the current recession is the natural and necessary scaling back that goes along with it. Frankly, your life doesnât have to look like an episode of Hoarders to benefit from a little bit of downsizing.
In the housing market, this cutting back is reflected in the average size of newly built homes. The era of the McMansion is over and new home builders are looking to go much smaller.
The National Association of Home Builders recently reported that after a 2,521 square foot peak average floor size for newly built homes of in 2007, the average floor size of new homes dropped to just 2,169 feet in 2010.
Additionally, 48% of respondents to a survey by Relocation.com said that their ideal home size is between 1,000 and 1,999 square feet.
Back in August, Trulia.com stated that âThe McMansion era is overâ and cited their own survey that showed that only 9% of potential homebuyers want houses that are 3,200 square feet or larger.
Not just for the smaller mortgage and reduced bills
There are obvious economic benefits to having a smaller house: a smaller mortgage and smaller utility bills. There are also benefits that exceed the financial bottom line. Smaller houses change the way that people live and are attractive for people who want to live a less cluttered and complicated life.
With publication of The Not So Big House, architect Susan Susanka is credited with starting the small house movement back in 1997. According to her website, ânot so big doesn't mean small. It means not as big as you thought you needed.â Also, âthe magic is that although the house is smaller in square footage, it actually feels much bigger.â
The typical size of a small home in this movement seldom exceeds 500 square feet. While the small house movement has been gaining steam for a number of years, the recession has pulled it into focus to encourage people to think about what they really need.
Living a fuller life with less
Youâre probably not going to live in a 500 square foot home, but if the figures from the National Association of Home Builders are indicative of a larger trend, you are likely weighing the benefits of a much smaller house. While this is gloomy news for anyone with a McMansion on the market, it is good for most homebuyers in general, especially if they can bring Susankaâs ideas to life and make less feel like more.