New Homes Being Built Smaller as Spending and Money Becomes Tight
Where it used to be bigger was better, new homes being built following the Fall’s market meltdown are smaller in size which makes them more affordable and practical for homeowners. The trend which saw home sizes increase from 1,750 square feet in 1978 to 2,479 square feet is now back on a downward spiral. Even high end buyers are looking to economize on the size of the home as spending and money becomes tight.
Architects and builders have both noticed the trend in smaller homes as affordability became a major problem. When high end buyers were starting to purchase smaller homes, they knew this was a trend that could not be ignored. Census data also reveals this trend and it is obviously due to the economic recession that is currently underway. People are modifying their spending and money habits and are demanding smaller homes that are less costly to build. Home heating costs have skyrocketed and the larger the home is, the more expensive it is to keep warm in the winter months. This trend in smaller homes is likely to continue until the economy recovers, and it may still stand pat as people realize that as household sizes shrink, there is not a need for large, opulent homes.
People used to like the status of having a large home. Now that the economy has taken a turn for the worse, status has lost its luster. People are keeping a sharp eye on their spending and money matters and buying a smaller home is a good way to keep heating and maintenance costs in check. People also are concerned about their home values. With home prices dropping, investing in a large home may not be the wisest financial move right now. Investing in a smaller home can mean more substantial returns on the property value when it comes time to sell the home.
As people start to simplify their spending and money matters, architects and builders are following suit by designing and building smaller homes that will attract buyers who are looking for affordable housing alternatives. In today’s housing market and economic climate, smaller may be better in terms of spending and money as well as value down the road.
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