The days of bigger being better seem to be over, at least for now. People are downsizing due to necessity these days. The real estate slump has the median American home size down from 2,300 at the peak in 2007 to 2,100 square feet today according to a study done by Trulia. During the peak, people were financing home remodels and additions through re-financing deals. Now most of those loans are a thing of the past. Home owners can’t get re-financing loans and most can’t afford them anyway. The unstable economy also may give many homeowners pause when considering expansion. With unemployment and foreclosure rates so high, many homeowners are just trying to keep their heads above water and hold onto the home they have. Some are even downgrading from larger to smaller homes.
While downsizing seems to be out of necessity, this is not the only reason for the shift from bigger to smaller. Both established baby boomers and new-in-the-market millennials are preferring smaller homes and backyards with more of a sense of community. Communal green spaces and front porches seem to be more desirable than sitting rooms, formal living rooms and extra bathrooms that go unused. The new millennial generation are buying their first homes and seem to want to live in more urban and walkable communities as opposed the suburbs. Baby boomers are getting older and prefer smaller floor plans and more manageable homes.
Whether the reason for the shift is cultural or necessity, homes in America are getting noticeably smaller. This year’s concept home, the ”Home for the New Economy” according to Builder Magazine is only 1,700 square feet. This home is built to represent the current state of the economy. The super size everything mentality may just be a thing of the past.
