New Homes Getting Smaller ...Smaller

The Wall Street Journal's article, New Homes Getting Small...Smaller is another reflection of the economy in recession.  Our desire for bigger and bigger may just be a thing of the past because McMansions are more costly.  During times of recession our appetite for bigger and better wanes.  David Crowe, the NAHB's chief economist says, "We also saw a decline in the size of new homes when the economy lapsed into recession in the early 1980's.  And further went on to say, "The decline of the early 1980's turned out to be temporary, but this time the decline is related to phenomena such as a increased share of first-time home buyers desire to keep energy costs down, smaller amounts of equity in existing homes to roll into the nest home, tighter credit standards and less focus on the investment component of buying a home.  The new norm bigger may not be better.

Comments

[James Holland]

I really wish this would change. I am in California where not only are the home getting smaller and smaller, they are getting closer and closer together with a racing strip of a backyard. On a house built in 2008, I should not be able to hear my neighbors toilete flush! Maybe they dont have to be bigger... but please spread them out.