New Homes Drop in Size in the U.S.
In the U.S., for the first time in 27 years, the average size of a new home has dropped, according to the National Association of Home Builders. The square footage of an average home dropped from 2,520 to 2,480 in 2009. This is the first fall in size since 1982.
Image: Danilo Rizzuti / FreeDigitalPhotos.net
The reason for this drop in size? Many sources cite the recession as the biggest driver. Some people who had bought very large homes when they were doing well are now finding they have to downsize to cut costs because of frozen wages, lost bonuses or even lost jobs.
However, sources in the industry also point out that this trend has been gathering steam for awhile, and the recession has just made it stronger. Carol Lavender, president of Lavender Design Group agrees: “You’ve heard the mantra ‘downsize me’ and ’small is the new big?’ Well, last year was definitely a downer.”
Better Homes and Gardens also reports it is becoming a bigger priority: in 2009, 36% of homeowners felt there next home would be “somewhat smaller” or “much smaller” than their current home. This is up from the 32% who felt this way in 2008.
Canada does not have an easily tracked metric for home size the way the U.S. does. However, the indications are that this trend is also appearing here, too.
Several long-term demographic factors are playing a role. Baby boomers are hitting retirement, and this is encouraging many of them to leave their family-sized homes for smaller nests. At the same time, urban spaces are becoming more appealing, and this is encouraging people to live in smaller and smaller units to be able to afford it. And finally, anti-sprawl legislation is hitting many municipalities, which is encouraging developers to minimize the size of the new homes they are building.
What does this trend mean overall? Well, small is better in many ways: why waste money owning (and heating) square footage of a home that is never or under-used? There is also the negative environmental impact of over-sized homes. Many people in Canada are trying to curb their consumption, and curbing the size of our homes is a great way to do it.
Of course, you should always buy the size of home that feels right for you. But remember: small can be beautiful!
Heleen Jacobsen
Broker of Record with InfoMarket Group GMAC Real Estate
www.infomarketgroup.com
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