Increasing home sizes
By carolscash
@carolscash (9492)
United States
September 9, 2007 12:32am CST
Have any of you noticed the things that this article is talking about? As Americans are losing more and more homes to foreclosure it looks like to me that we would learn from our mistakes instead we are doing more and more to have big houses that we don't need.
Large houses have increased in popularity over the last few years. This is somewhat unusual given that the average family has not increased. In fact, according to statistics from the National Association of Home Builders, the average American household has declined from 3.1 people in 1970 to 2.5 in 2006, while the average home grew from 1,500 to more than 2,400 square feet.
Why is the demand for larger homes growing if it is not a result of a growing family? Many in the industry offer several possible reasons such as the homeowner’s desire for more privacy, land, living space, storage space for all they’ve accumulated, or maybe they simply want to make a statement regarding how successful they are. Whatever the reason, the super-sized family home appears here to stay.
2 people like this
4 responses
@Debs_place (10520)
• United States
10 Sep 07
If they keep building them, they will close the entry level person out of the new home market. I have had my home for 18 years, I couldnot afford to buy it now, and am hoping that whne i sell it, I will have made enough money to buy a house cash in a cheaper area.
The other thing that people don't consider is the cost of heating these monsters. 18 foot ceilings and huge rooms are expensive to keep warm in the winter.
2 people like this
@carolscash (9492)
• United States
10 Sep 07
Every year, it seems as though more and more people go for heating help and I can't imagine as you say heating a room with 18 foot ceilings.
Entry level buyers are going to be shut out and that isn't fair to new couples wanting to start a family and buy their first home!
@carolscash (9492)
• United States
10 Sep 07
Also, I have read reports for several months now about homeowners sueing the contractors for the homes falling apart just a few months after buying them or never getting finished. Why are people paying $300,000 plus for a home and it falls apart or doesn't get finished?
@theprogamer (10534)
• United States
10 Sep 07
I forgot to post it, but I've been seeing reports that these houses aren't of the best quality. I mentioned it before, but there have been some needless accidents with homeowners and these juggernaut cookie cutter homes (bad wiring, electrocutions, shoddy construction).
1 person likes this
@pismeof (855)
• United States
9 Sep 07
What you say is true about homes getting larger and I will give you another reason why.
The purchase and development costs for property is very high and the profits for the contractors is based on a square foot price.
In order for the principle contractor or developer to justify the risk of the land purchase and costs, They expect a certain ROI(return on investment).Typically around thirty percent.The only way to do that is by building a large home.
A developer can't build a 1200 square foot home on a piece of property that cost him $180,000 .Who's going to pay $300,000 for a 1200 SF house? Not many buyers in that category. So then rather then get the usual $100 sf for the house he'd have to reduce the selling price to get rid of it.This is where the slim profit margin comes in,so why bother?
It makes far more sense for the developer to put a 2400 SF home on that same piece of property to get the $100 sf price he needs to meet his profit margin.
@wildus05 (30)
• United States
9 Sep 07
I agree with you the problem with this is no one can afford this homes. Mortgage companies love it the builders love it and the home owner thinks he loves it till that variable interest rates starts to change and they start lossing their homes. We are seeing an epidemic in the housing market right now. There are a ton of homes sitting on the market both never lived in and foreclosures. People are starting to see their homes decrease in value. Builder are strating to defalt and mortgage companies are going under. Nothing like a good recession to correct things. If you want my personal opinion on how to stop the bleeding START BUILDING SMALLER HOMES. There are a ton of people who need and want home but cannot afford what is out there. If the builder split these lots up smaller and put a 950 to 1500 SF home on the market I think you would see they would go much quicker and you would not see as many defalts seeing there are more affordable than 2200SF home going for $350,000.
Best of Luck to everyone out there these are uncertain time ahead
My Income For Life
www.jaxdomain.ws
@carolscash (9492)
• United States
10 Sep 07
So why does the developer need to make 30 % profit. Could he not be happy with 20%? After all, that is a large sum of money on a house that sells for over $400,000. I believe that the future generations are really going to struggle in life the same as the older people did if we don't do something about our economy now!
I agree with Wild as far as this discussion goes.
@crazed_moma (1054)
• United States
10 Sep 07
lol yes it killed me when my neighbor moved in and said they were growing out of their 2000 sq. foot home. They only have two kids! Me, hubby and five kids are in 2,600 sq. ft. More than we need but "it's an investment". Sometimes I do miss my small 2000 sq. ft. home but it's nice having a little extra room..... Course it's more to clean too.
1 person likes this
@carolscash (9492)
• United States
10 Sep 07
I haveoften wondered who cleans these houses or if they just don't use the majority of the space so it doesn't need cleaned as often. I guess with that kind of money, you can hire a maid.
@theprogamer (10534)
• United States
10 Sep 07
You've also got to consider where these houses are now being built. Far from the inner city and outside of the more established pre 90s inner ring suburbs. The people living there do move for the bigger houses, better schools and more opportunity, but there are other reasons that this is happening to besides just getting a bigger house (safety, homogeneous preferences). Also as certain parts of society get more materialistic they'll need the bigger house to store up the garbage they barely use. And as someone else mentioned, only certain people can afford them (or take a loan for them) and everyone else is basically told to go rot "in their place". I've seen it for more than the past decade! And these neighborhoods and pseudo areas are filled with some rather unfriendly, snobby and fake people anyways. I find it unpleasant and disgusting.
1 person likes this
@carolscash (9492)
• United States
10 Sep 07
I agree with you on that aspect. I hate to see these people who think that they are so much better than everyone else just because of where they live.
