McMansions a legacy of the 1980s?

A Philadelphia man who loves the 1980s suggests that one of the legacies of this decade is the McMansion:

Remember the ’80s? Greed. Narcissism. Size.

“Everything was big — really big,” Sirota writes. “Big hair. Big defense budgets. Big tax cuts. Big shoulder pads. Big blockbuster movies. Big sports stars. The Big Gulp.”…

Sirota (who was born in 1975) says the ’80s speak to us today for one simple reason: “Because it’s still the ’80s. The calendar doesn’t say ’80s, but we’re still looking through an ’80s mind-set.” Think Charlie Sheen. Think Lehman Brothers. Think McMansions.

I don’t know if this guy is right or not about these specific links between the 1980s and today. I suspect people growing up in different time periods (whether it is was the 1980s or 1960s) would suspect that the periods of their early lives are most consequential for subsequent events.

But, we could examine more closely his idea that the 1980s gave rise to the McMansions of recent years. Let’s first look at the average square footage of new homes. Here are the increases over the decades (US Census data):

1973-1979: from 1,660 to 1,760 square feet – increase of 100 (5.68%)

1980-1989: from 1,750 to 2,035 square feet – increase of 285 (14.00%)

1990-1999: from 2,080 to 2,223 square feet – increase of 163 (7.33%)

2000-2009: from 2,266 to 2,438 square feet – increase of 172 (7.59%)

So it appears the 1980s did see a larger increase in the size of new homes.

Second, we could look at when the term McMansion entered the popular lexicon. From news sources that I have looked at (this is not one of them but it does give a similar idea), the term really started picking up steam in the late 1990s. Even if the houses started getting larger in the 1980s, it wasn’t until the late 1990s and early 2000s that people frequently started calling them McMansions. In this case, perhaps the term took some time to develop or McMansions really originated in changes of the 1990s.

Overall, these sorts of sweeping ideas (everything was BIG in the 1980s!) could use some more nuance.

Tying together being green, McMansions, and promoting urban development in Asia

As the world discusses how to reduce carbon emissions, Edward Glaeser (see a review of his latest book here) suggests that America is an odd position: we want to promote urban development in fast-growing Asian countries and yet we subsidize sprawl within our own borders.

America’s interest in promoting a hyper-urban Asia, so different from our sprawling nation, puts us in a slightly awkward position. How can a country of McMansions and Ford Expeditions preach the virtues of low-carbon urban living?

Freedom is America’s greatest treasure. This includes the freedom to choose where we live — city or suburb. But we should eliminate the mistaken policies that artificially subsidize sprawl. The federal government subsidizes transportation significantly more in low-density areas than in high-density areas, and that pulls people away from cities. Economist Nathaniel Baum-Snow found in 2007 that each new postwar highway that cut into a city reduced that city’s population by 18%. The home mortgage interest deduction induces people to leave urban apartments, which are overwhelmingly rented, and move to suburban homes. Because the deduction scales up with the size of the mortgage, it essentially pays people to buy bigger, more energy-intensive homes.

Reducing such policies, which push Americans away from our green cities, will enable us to make a stronger case for higher-density dwelling in India and China.

The key to Glaeser’s argument here is that the US government “artificially” makes suburban living look like the best choice. Without these subsidies, highway construction, mortgage benefits, etc., the suburbs might not look like the good option that they appear to be. Glaeser may be right – but I wonder if there still might be Americans who would want to pursue a suburban lifestyle. Perhaps this alternate version of American suburbs would be more restricted to the wealthy who could subsidize their own extra costs.

But Glaeser is also suggesting that there is the matter of looking like hypocrites: how can we as a country ask other countries to live in certain ways when we promote relatively ungreen suburbs? More broadly, should the many residents of China and India who have joined the middle class in recent decades get a shot at living in suburbs or should they have to live in more urban developments to help offset American patterns?

And I would also note the common citing of McMansions and SUVs as emblematic of the entire United States and its behaviors.

Nostalgia for the early 1990s: McMansions, SUVs, and more

The early 1990s are not that long ago but this comparison of the 2011 Ford Explorer and the 2011 Jeep Grand Cherokee is wistful for this earlier era:

The early 1990s are starting to seem like a long time ago. McMansions were barely a twinkle in the Toll brothers’ eyes. Apple stock was less than fifteen dollars a share. The Iraq war was going great. A tea party was something for little girls. And Justin Bieber hadn’t even been born.

In the U.S. car market, perhaps the biggest difference between then and now is that the SUV, as an automotive force, was in its infancy. Sure, Wranglers, Blazers, Broncos, Scouts, and the like had been bouncing along on the fringe of the American automotive scene for a while, but their numbers were small.

I am interested in this mention of McMansions, which has several connotations in these opening paragraphs:

1. It is not unusual to lump the McMansion in with other consumer objects. Perhaps its most common pairing is with the SUV, often considered an oversized and ostentatious vehicle.

2. The Toll Brothers, a large American home builder, are often tied to McMansions. This builder preferred to call their larger homes “estate homes” but critics ended up dubbing them McMansions. Read a quick summary of Toll Brothers history here. The term McMansions really started being used in earnest in the late 1990s.

3. There seems to be a growing idea that the McMansion might have been a blip in American history. This review pegs the McMansion as beginning in the 1990s and other recent commentators (see here and here) have suggested McMansions are done and will not return. The jury is still out on this one: the size of the average American home grew steadily from the 1950s until just a few years ago.

(4. An unrelated issue: can we already have nostalgia for a time just 20 years ago? Think of this in terms of “oldies” on the radio: it’s hard to even find 60’s music on the radio and now the 80’s and 90’s are considered old. How far can we compress the past in order to develop a prepackaged nostalgia?)

USA Today says McMansions are “out of vogue”

Citing recent housing figures, USA Today argues that McMansions are “out of vogue”:

Fran DiBello of Cleveland didn’t need a lot of room. For her, a three-story townhome has everything she could need.

“I really like the style of this home,” she says. “It’s very efficient. The appliances, the heat.”

It also has a view of Lake Erie and an 8-minute commute to work. Ten years ago, this neighborhood wasn’t here; 10 years ago, these homes would have been over shadowed by the McMansion.

“A McMansion was a trophy — often times a house with five or six bedrooms when you only needed two,” says Scott Phillips, real-estate agent with Keller Williams in Clevekand.

The median size of homes purchased in 2008, the most recent year for which figures are available, is 1,825 square feet. For first-time buyers it is 1,580 square feet, according to the National Association of Realtors.

A majority of the homes Phillips sells are less than 1,700 square feet.

Some consider it an outgrowth of being green; others see it as people living within their means.

Another shift in housing trends also means a move closer to the city’s core, Phillips says.

Numbers show that 90% of home sales nationwide are to young professionals looking for urban housing.

“People like to live where they’re closer to the amenities, the parks, nightlife, grocery stores,” he says.

The article seems to invoke several meanings of McMansions:

1. A more suburban home. This is contrasted with a desire for more urban homes in these tougher economic times.

2. A large home, a “trophy” where people bought a bunch of space that they really didn’t need. It is also suggested that this is wasteful of both money and resources (not being “green”).

But overall, the real story of the article seems not be about McMansions but about the most recent patterns: a shrinking median size of homes purchased and a rise in demand for urban housing among young professionals. This is contrasted with the “McMansion,” that exemplar of all suburban housing and of American housing excess.

About these newer trends:

1. This article cites the median size of homes purchased in 2008. The typical figures cited for home size is the size of the average new home purchased. This figure is still over 2,400 square feet though this is down a bit from the peak of several years ago. The median size is rarely cited and this article doesn’t provide any comparison so that we would know how this size in 2008 compares with previous years.

2. I also had not heard of this figure that “90% of home sales nationwide are to young professionals looking for urban housing.” This is remarkable if it is true. It suggests that this group is the primary one driving the market and that they clearly prefer more urban living. This corroborates what the National Association of Home Builders has discussed.

3. Is this a long-term trend or will Americans seek larger homes once the economy picks up? See my thoughts here.