Category Archives: McMansions

CNN says “McMansions are making a comeback” but the data is limited

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CNN reports that McMansions just may be on the way back:

During the past three years, the average size of new homes has grown significantly, according to a Census Bureau report released Monday. In 2012, the median home in the U.S. hit an all-time record of 2,306 square feet, up 8% from 2009.

During the recession, Americans downsized and the average new home shrunk in size by 6% over two years to 2,135 square feet. At the time, many industry experts said the days of the McMansion were over.

The shrinkage was supposed to indicate that a new era had begun, with young buyers seeking to live closer to urban cores and settling for smaller places and baby boomers downsizing after their kids had flown the nest.

But it wasn’t that consumers wanted less space, many just couldn’t afford more, said Jeffry Roos, a regional president for home builder Lennar. And now that the economy is improving, they’re demanding bigger homes again, he said.

This is what I suspected might happen: once the housing market picked up again, some Americans would go back to buying bigger houses. But, this article has a few problems as it relies on (1) the median home size and (2) talking to several large builders.

Regarding home size: the figures cited more often is the average home size. The average size for new houses went from roughly 900 square feet in 1950 to nearly 2,500 in the mid-2000s. The median home size might be more accurate as the extra big homes can’t skew the data as much but the average is used more often. Also, the median hasn’t changed all that much in the last few years – this is only a difference of 150 square feet, a 12×12 room. Why can’t we see figure about the number of big homes that have or have not been built rather than relying on these overall figures that are a snapshot of a varied housing industry?

Relying on just a few large builders also does not reveal the big picture. The builders cited, particularly Toll Brothers, are big players but the housing market has a lot of different builders and developers. Overall, how are lots of different builders feeling about big houses? Are they actually building these bigger houses? What do real estate experts say? The news for Toll Brothers has looked good recently but there is more to the big house market than just Toll Brothers.

This seems like an article that would benefit from better data and also may not really be able to be written until some more time has passed and the trend is more clear. In the meantime, simply invoking the term McMansion and discussing a possible trend is apparently enough…

UPDATE 6/5/13: As the CNN story is repeated across the web, there is some confusion. For example, look at how this retelling mixes the idea of an average or median:

A new Census Bureau report says the average size of a new home has grown eight percent in the last three years, up to a record 2,300 sq. ft. in 2012…

According to the National Association of Homebuilders, buyers prefer a median home size of just over 2,200 feet, in line with the Census average.

Two different figures for the “middle” size mean two different things…

Wait, the good episodes of Arrested Development are like fully furnished McMansions?

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One commentator suggests fans of the new season of Arrested Development should be patient and then makes an interesting comparison:

Stay cool, Internet. Arrested Development‘s new Netflix-delivered season may prove to be great yet.

Within hours of the streaming service dropping a 15-episode Bluth bomb, critics and fans rushed to proclaim the new episodes as substandard. Mere model homes instead of the fully furnished McMansions that they had watched and rewatched over the past few years. And while I certainly count myself amongst the fans who feel at least a wee bit disappointed by the new episodes, it’s still far too early to jump to conclusions about the episodes’ quality or legacy.

You see, Arrested Development is a unique show. While most sitcoms rely on simple setups and punchlines for their laughs, this is one show that runs amuck on the formula.Punchline often come before setups, and it’s not uncommon for objects to regularly flash across the screen and get call-backs several episodes (or even seasons) later. Basically: Many of the show’s jokes were simply not designed to make any sense the first time you see them.

As someone who has studied the use of the word McMansion, it is unusual to see someone making a favorable reference to McMansions. In this article, fans of Arrested Development are waiting for the “fully furnished McMansions” which are compared to the good episodes of the show. This is odd enough in itself. But, there is an extra twist. The show itself has commentary about McMansions. As Wikipedia puts it, “The Bluth family of the television series Arrested Development is in the business of building opulent-looking sub-quality housing.” Part of the show’s comedy is that this family who involved in a quintessential American industry, building homes, is so dysfunctional. They provide the American Dream but live a wacky version of American family life.

I also suspect that many fans of Arrested Development would not be fans of McMansions. The sort of arcane and long-form humor (see the running jokes here) of the show doesn’t exactly endear itself to the masses.

Housing recovery more than just the McMansions of Toll Brothers?

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One analyst suggests the housing recovery in recent months is more than just an uptick in McMansions and big homes:

The housing market appears to have recovered from the depth of its decline. Toll Brothers (TOL) reported a whopping 46% jump in its latest earnings report and Home Depot’s (HD) earnings soared 18%. Today the National Association of Realtors reported that April existing home sales surged to their highest level in more than three years…

Michael Santoli, senior columnist for Yahoo! Finance, says the housing recovery seems to have a new leg based on a scarcity of supply coupled with low interest rates and growing demand.

“This can feed on itself for a while,” says Santoli, “not just with regard to Toll Brothers, which makes higher end McMansion-type houses, but across the industry.”

Santoli says not to expect a steep rise in prices from here despite a “bottleneck of demand.” And don’t expect all housing-related stocks to surge.

It would be helpful to see more exact housing figures at different levels of the market. Big homes seem to be doing okay as evidenced by the strength of Toll Brothers. But, the lower ends of the market don’t seem to be recovering as much as underwater mortgages lead to limited supply and hold the housing market back. When the housing market is truly recovering, shouldn’t a broad swath of Americans benefit? Or, are we seeing a fundamental shift in American housing where middle and lower-class residents have continuing difficulty in purchasing homes?

One way to destroy the planet: “heat a McMansion”

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Heating a McMansion is part of a list of 12 ways of “how to destroy the planet”:

The easiest way to waste extra energy in a large home is to keep the air conditioning and the heater on all the time, and adjust them both up until you’re comfortable. Space-heating makes up nearly half of the average home utility bill.

Heating water uses up more energy than anything other than heating air. For the profligate, that means long showers and always setting the washing machine for whites.

Perhaps this is why there is more interest in energy efficient homes or even net-zero energy homes. This argument would be even stronger if there were some numbers to compare larger and smaller homes. How much more energy does an average 3,000 square foot require compared to an average 1,800 square foot home? Or a 5,000 square foot house versus a 2,5000 square foot home?

One way around this would be to have home sellers include average utility bills as part of the documentation or listing of the property. Think of it like a MPG rating for a car – homeowners should also have the ability to assess the energy usage. Going further, home sellers might also list comparisons to other nearby homes. I’ve seen reports that using smart energy meters that give homeowners comparisons to their neighbors helps reduce usage so why not also make it part of the real estate process?

Australian expert says McMansions should be divided into apartments

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An Australian expert tackles the problem of McMansions and affordable housing:

Western suburbs “McMansions” should be converted into apartments to help deal with Perth’s population growth, an expert says.

Leading WA environmental scientist David Kaesehagen said walls or divisions could be built within big properties in the most affluent suburbs to add to housing stock in a rapidly growing market…

The Australian Bureau of Statistics has forecast Perth’s population will grow from 1.8 million to 4.2 million in the next four decades…

Mr Kaesehagen said with the right laws and incentives, owners of large mansions could be persuaded to divide their properties. “This is a way of using existing built form to increase density without introducing high-rise or changing the aesthetic of these established suburbs,” he said.

This is not the first time this has been suggested but I have yet to see a community or significant number of people push for this. I suspect it would be really difficult to do this kind of retrofitting in suburbs often so concerned about property values and density: who would want to be the first resident to have your house subdivided as your neighbors look on and wonder about their housing values? How much would it cost to convert larger homes into multiple units when they were originally intended for single families? This might work best in McMansion neighborhoods that are abandoned or not yet opened (each of these would pose their own set of problems) so there would be no community members in opposition. But, then why not build higher density developments in the first place?

Argument: “Why more McMansions are bad news for first-time home buyers”

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McMansions may be good for builders but not so much for people looking to purchase their first house:

Home building has been steadily picking up this past year after taking a sharp nosedive during the recession, although production is still far below historical norms. Orr said home builders are moving forward with cautious optimism, being wary of their pre-recession mistake of overbuilding.

So to help make up for the slowdown, builders are now making homes larger once again. Bigger homes means bigger sales revenue — and for only a minimal bump in construction costs, Orr said.

The trend has been to the detriment of first-time and lower-income buyers, who are finding both the new and existing home markets offer them very few options today.

“They (home builders) have kind of abandoned that sector,” Orr said.

The existing home market nationwide — but particularly in Phoenix — has been facing a chronic shortage of homes for sale, and the problem is most severe in price ranges below $200,000.

Many buyers have thus turned to new construction out of frustration. But given the sharp price hikes of new homes recently, lower-income buyers aren’t finding the same relief, Orr said.

In other words, builders can make more money on the bigger homes for those who still have money to play with. But is this just about builders? I wonder if there are two other things going on here:

1. The article hints at a depressed existing house market, suggesting that there isn’t enough movement in the housing market for these older smaller homes, what might be called “starter homes,” to become available in large numbers.

2. In addition to not much existing inventory opening up, perhaps there simply aren’t enough buyers for smaller houses for builders to take notice. What numbers are we talking about – how many first-time home buyers in the Phoenix are not able to find a home they want? This reminds me of recent data from the Chicago area: while housing starts may be up a large percent, the housing market is still not operating at normal.

That all said, if people want to get into purchasing a home can’t do so or are delayed, this could contribute to more long-term problems for the US housing market.

You can indeed paint McMansions and the suburbs

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One columnist is taken aback when someone is able to paint the suburbs:

Some while back, I sniped that, while landscapes of the kind that made the New Hope School of Impressionist Painting so influential continue to be painted in the absence of the actual scenery, the McMansions that knocked farmland off the map seem not to have inspired anyone.

I was wrong. For several years, pastel artist Michael Wommack of Langhorne has been exploring the suburban grid, affectionately in the case of Levittown, where he grew up, and with more of an edge when it comes to pretentious developments in the former hinterlands.

Wommack’s “A False Sense of Security,” among works on view at Pennswood Village through May 12, was inspired by a cul-de-sac in a pricey neighborhood the artist drove past one day…

He calls his tract-house studies “The Suburbia Series.” “People who know Levittown call it ‘The Levittown Series,’ ” he says.

This might confound suburban critics who often argue that suburbs have little redeeming value. Art dealing with the suburbs, whether it is in novels, on the big screen, or on canvas should then be devoted to the hidden dark sides of suburbia. But, suburbs, like other locations, are made up of people trying to make sense of the world, however misguided their efforts might be. For someone who grew up in one of the Levittowns, it sounds like a perfect subject to me.

It would then be interesting to see how people respond to such paintings. Would critics take non-critical depictions of the suburbs seriously? Would exactly would purchase paintings depicting Levittown-like communities?

McMansions = SUVs, large TVs, air conditioning, and steaks

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Here is another example of how McMansions are tied to larger patterns of excessive consumption:

OK. Move along. Nothing more to say. Earth Day is over. Get back into your SUV, drive to your 5000 square foot McMansion, flip on your 80-inch plasma TV, crank down the AC, crank up the grill, throw on a big slab of carbon-laden beef, secure in the knowledge you’ve done your duty, paid homage to the lonely little rock in space upon which we depend for life.

Whew. Hard work, great sacrifices. Sure glad Earth Day only comes once a year.

One way to interpret this is someone could fight against McMansions and their construction and still have to deal with a whole host of other issues including driving, entertainment options, and what kind of food Americans eat. In other words, McMansions are just one part of a larger issue of American consumption. Perhaps the kind of people who purchase McMansions in the first place are more likely to purchase the other listed products but I haven’t seen this kind of evidence.

Fighting McMansions in Miami

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The group “Save Miami Beach Neighborhoods” is looking for help in fighting McMansions:

Miami Beach homes comprise a variety of architectural styles that reflect the history of our City, which is not yet 100 years old. Unfortunately, recent zoning changes have allowed for out-of-scale McMansions which threaten the historic character, authenticity and desirability of our single-family neighborhoods.

Our goal with Save Miami Beach Neighborhoods is to ensure that new construction is in line with existing neighborhood context. We want to stop oversized McMansions that are popping up seemingly all around us…

As homeowners and concerned residents, we must act to limit new construction size and scale before our neighborhood character is lost forever.

I would say the one photo of an 18,000 square foot McMansion in the neighborhood is pretty emblematic of what critics do not like about McMansions: large, taking up much of the lot, unusual design compared to the house next to it, and much larger than the next house (which is probably only 5,000 square feet).

At the same time, I wonder if outsiders would look at this and say it is simply an argument between wealthy people about something nebulous like “community character.”

Claim: America has 40 million McMansions?

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Here is an interesting claim: America has 40 million McMansions.

Americans, especially generations X and Y, want shorter commutes, walkability and a car-free existence. Which means that around 40 million large-lot exurban McMansions, built primarily during the housing boom, might never find occupants.

My guess is that this application of the term McMansion is quite misguided. Look at the original news story about these figures:

America has too many big houses — 40 million, to be exact — because consumers are shifting preferences to condos, apartments and small homes, experts told the New Partners for Smart Growth Thursday, holding its 11th annual conference in San Diego through Sunday.

Relying on developers’ surveys, Chris Nelson, who heads the Metropolitan Research Center at the University of Utah, said 43 percent of Americans prefer traditional big, suburban homes but the rest don’t…

He estimated that this demand suggests a need for 10 million more attached homes and 30 million more small homes on 4,000-square-foot lots or less. By contrast, demand for large-lot homes is 40 million less than currently available.

There is no explicit mention of McMansions in this original story. There can’t really be 40 million McMansions. In 2000, there were just under 70 million total detached housing units. So roughly half of all American houses are McMansions? Also, there are 40 million houses in the exurbs? (You may have to define all suburbs as exurbs to get close to this.) At the same time, one could argue that the average new home, around 2,400 square feet is still too big for what many Americans want. But, a home at the average or even slightly over is not automatically a McMansion.