Bucking Expectations: Americans Demanding Bigger Homes
Data from the Census Bureau and the National Association of Home Builders (NAHB) show the average size of the new American home has been growing again, despite predictions by others that it would shrink dramatically. Rising from 2,392 square feet in 2010 up to 2,480 square feet last year, even before most of the current positive momentum took hold luxury and move up buyers able to get more for their money have been pushing the envelope. These cash rich buyers and those with excellent credit are buying the best homes they can find. Unfortunately, the craze this has created at some unveiling events has certainly meant they are far overpaying for their new homes but this is great for everyone else buying a home, selling a home or looking at real estate investing as it pushed up resale home values too. Some builders blame this trend on a new breed of more affluent buyer while statistics show many foreign nationals are also scooping up these homes by the dozen to bury their capital before housing bubbles burst in their home countries. However, this isn’t a trend likely to slow down soon. As the economy and real estate market recovers forgotten financial lessons and new money will have many stretching themselves to outdo the Jones’ next door. What to these spendaholics want in a home besides additional square footage? Home offices, entertainment areas and lots of bathrooms. However, real estate investors also need to keep an eye on some more sustainable trends in buying a home which are emerging too. This includes more single parent families and singles seeking smaller pads as well as those cashing out of the city to seek acreage and more space for the young ones a little further afield where land is cheaper.
Is this the re-birth of the McMansion?