Big Homes Become Less in Demand
Analysts predict that Americans may soon want smaller homes, but with plenty of features and amenities.
Since the early 1970s, home sizes have increased by more than 50 percent, while the number of people in most households has shrunk, indicating that bigger was better for most homebuyers. According to a recent article appearing in The Denver Post, this may no longer be the case.
Housing industry research indicates that home sizes have almost peaked and that buyers are going to want more features and new designs over the next decade. It is also increasingly evident that older adults and different ethnic populations will play a bigger role in housing production that caters to their needs and priorities.
In 2006, the average home built in America was 2,459 square feet, which is an increase from an average of less than 2,000 square feet in the 1980s. “The average home size has been continuously rising for the last 35 years,” says Gopal Ahuwalia, a leading researcher with the National Association of Home Builders. “During the same period, the family size has been declining. People were buying homes not to meet the functional needs; they called it ‘lifestyle.’”
A new study conducted by the building industry indicates a change in this trend. The study forecasts home styles and all signs are pointing to homebuyers getting enough square footage. “We think the home size is not going to rise any more,” Ahuwalia explains. “The size of the home will be between 2,300 and 2,500 square feet by 2015 – it’s not going to go up.”
Some designers even expect a backlash against the so-called super-sized “McMansions” we have seen in recent years in many neighborhoods. Victor Mirontschuk, a New York architect believes, “We will probably see a resurgence of the small house.” He explains that rising energy and construction costs will probably force homeowners to make do with less room.
Mirontschuk also anticipates a boom in demand for high-density housing in urban areas. “They are being marketed to baby boomers who are going to give up their big homes,” he says. Builders are definitely hoping to capitalize on the aging population of baby boomers, and are working to target that demographic. Boomer buyers typically want less space and more amenities, such as walking trails, community swimming pools, dog parks and fitness centers.
Researchers do indicate, however, that space demands will continue to grow for certain ethnic groups, such as Hispanic and Asian families. “In the next 30 years, more than one in four of the homes will be bought by ethnic groups,” Ahuwalia says. “There is a vast difference in size of the household in different groups.”
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