With the housing market slowing down, home builders are tailoring their home designs to be smaller and less costly. According to MSNBC, relentless downward pricing pressure from a large inventory of preowned and foreclosed homes for sale is driving the trend. Los Angeles-based home builder KB is launching a new line of homes that start at 1,230 square feet and are priced at a little over $200,000, which is quite different from their previous line of homes that featured 3,400 square feet buildings priced at $450,000. Builders are also favoring an open concept where the living room and dining room are joined in one big room, rather than walled off from one another.
the biggest problem with homes sales is that homes on the market are double and triple overpriced for what they are really worth, and the public isn't going to put up with it. now builders are giving up on the "mansions" and you get 1200 sq.ft. for 200,000 plus interest over the term of the loan, are they kidding. give us more value for our money. greed will bring down the builders, lenders, bankers, etc. i am glad i am living in a almost 1900 sq.ft.
home i paid 86,000 before everyone went wild on home prices. don't forget that price should match true value.
People will pay what a house is worth not what the sum of the parts are.
thats why housescost more in New York than Buffalo. Houses can be worth less than they cost to build as well. Look at houses built fifty years ago. To build the same features in a modern home may cost significantly more. Or less for that matter. As I stated earlier. A home is not valued by what it costs to build. Not to mention the value of land. you can get 50 acres in rural Iowa for the cost of a 100' by 35' parcel in a my city.
I would argue the drop in prices will drive people to smaller homes in the short term, but that aside I think big houses are looking at a decline. Everything else in our lives is getting smaller. Families in American and world-wide are having fewer children. TV was once a major piece of living room furniture now hangs on the wall. Computers and monitors once covered desks but now fit in your lap or pocket. Etc.
to some extent. I agree with the fact that houses have grown in size, but I think that a lot has to do with price per square foot, I am a builder in Michigan and my clients seem to prefer homes over 2000 s.f.as the cost per square goes down as the home expands, especially by adding floors. We are limited by code at 35 feet in height and they gravitate toward plans that use all of it, My clients are usually older, more able to afford bigger homes. I just finished a new home in October at 4800 s.f. at $640,000, a mid-level cost ratio.
There are those that still want "mini-mansions" and they'll pay for them !!