Are Americans Ready for Smaller Houses? Time Will Tell

Builders, agents expect increases in house sizes to level off soon
Builders, agents expect increases in house sizes to level off soon

RISMEDIA, June 1, 2006?(Baltimore Business Journal)?Erin and Oliver Somers were chasing the modern American dream back in 1999 when they moved into a new house in an Eldersburg subdivision.

Their new home was quite typical — 2,500 square feet and all of the associated amenities of the “McMansion.”

“But it’s just the two of us, and it was just too big,” said Erin Somers, vice president of communications at Magellan Health Services in Columbia.

So the couple decided to downsize, moving to a 1,700-square-foot home in Baltimore’s Homeland neighborhood earlier this year.

“It’s cozy, and it has a lot more character than the suburbs, where every house tends to look the same,” Somers said.

Real estate agents and builders in the Baltimore area and throughout the nation are expecting increases in house sizes to level off in the not-so-distant future as increasing numbers of the huge Baby Boomer generation become empty-nesters.

And, at least anecdotally, more younger people like the Somers are questioning the need for large living spaces, particularly as energy prices rise.

“For the first time, I’m starting to hear some younger couples talk about space and conserving electricity,” said Vicki Sindler, a Timonium-based Long & Foster real estate agent.

But, overall, statistics show that Americans’ appetite for the largest possible home is still strong.

“In the high price ranges — $1.5 million to $2 million — buyers still want everything,” Sindler said. “Nothing is dampening their spirits. They want more.”

The changes in the average, newly built home over the past five decades is staggering, according to U.S. Census Bureau statistics. In 1950, the average new house had about 1,000 square feet of living space, two bedrooms and one bathroom. Nearly 60 percent had a one-car garage or carport. Forty percent had no garage at all. Two-car garages existed only in an architect’s imagination in 1950.

Twenty years later, the average new home was 1,500 square feet with three bedrooms. About half the new houses still had one full bath in 1970; the other half had two or more. Forty percent of new homes had a two-car garage.

By 1990, the average new house was 2,100 square feet. By then, the vast majority — 85 percent — had three or more bedrooms. Eighty-seven percent had at least two full bathrooms, and 72 percent had at least a two-car garage.

Each year since 1990, house sizes have crept up. By 2004, the average size of a new home was about 2,350 square feet. The biggest change since 1990 was garage size. Sixteen years ago, three-car garages were a custom flourish for the rich and famous. Now, 20 percent of all new homes have them.

Will house size ever level off? Or will houses continue to grow?

The jury is still out. Experts say energy costs may play an even bigger role in keeping the average house size in the 2,000- to 2,500-square-foot range. In addition to heating and air condition costs, gasoline prices may have an effect.

So-called McMansions are usually built on large lots of a couple acres or more. In Maryland, in particular, virgin land is at a premium, forcing development farther away from the city centers. The high price of gas is making some people reconsider long commutes.

And the Baltimore area isn’t likely to loosen its nationally known development restrictions anytime soon.

“Maryland is a leader in smart growth and Baltimore County is recognized as a leader in planning,” noted Timothy N. Mead, a Phoenix, Md., architect who designs custom homes in Maryland and California.

So what does he tell clients who want a huge home? He advises against it and often lends out his copies of a now-famous series of books by architect Sarah Susanka, called the “Not So Big House.”

“Attitudes are changing,” Susanka said. “Several years ago, everyone wanted a formal dining room and a formal living room — even if those spaces were never used. Now, we’re seeing less of that.”

Susanka has a simple credo: “If you don’t use a room more than a half-dozen times a year, you don’t need it.”

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