Builders have ways to sell small but high-end homes:

Stumped on what to do about buyers who are looking for a home that comes with a tiny price but a McMansion look and feel? Enter stage right: the jewel box home.

Ranging between 650-2,500 square feet, these are a win for buyers who want something custom but affordable, but they’re also an ideal product for builders looking to diversify and sell a higher-end product across multiple demographics…

It’s just a smaller-than-average single-family home — not a starter home or a tiny house — built with high-quality materials, exquisite detailing and custom finishes with an emphasis on tailoring the home to the owners’ way of life for maximum elegance, harmony and function…

Another key advantage to building jewel box homes: They’re ideal for high-density areas. In some of Weremeichik’s planned communities, he has reached densities up to 9-11 dwelling units per acre.

I suspect this may be a way for builders to avoid the ignominy of constructing oversized single-family homes: they can build (1) homes with all sorts of nice touches that still command high prices and (2) fit even more of these smaller homes onto parcels of land. Of course, there is also the matter of providing the sorts of homes that at least some in the housing market desire. However, are the profits to be made in these smaller homes enough to outweigh what could be made in larger homes or other development projects?