At least some builders says McMansion may not be dead yet

Amidst suggestions that McMansions are being “shunned,” McMansions should be subdivided, and homebuyers want denser, walkable communities, at least some builders suggests McMansions may not be dead yet:

Wilson said builders are taking the slow approach toward embracing the younger generation of buyers, who are buying homes and starting families later in life.

“Most builders are still in recovery mode and remain cautious with any revolutionary concepts,” he said. “The one consistent thread is that the buyer continues to shop hard.

“Housing is in a recovery mode, but the consumer is still looking for the best deal he can find.”

Baby boomers set the tone for housing in recent decades, but their influence is starting to wane, Wilson said.

“This is not to say that the McMansion is dead – far from it,” he said, “just that the following generation – the Gen X group – is not as large as the preceding group.”

And most of the millennial or 20-something buyers aren’t yet ready to commit to home ownership – particularly after the decline in values they have witnessed in many areas of the country.

“I’ve heard that some of the new homes in California are getting a lot smaller, but I don’t see how that works around here,” said Jimmy Brownlee, Dallas-Fort Worth regional president for K. Hovnanian Homes. “Our buyers aren’t asking for that. We are trying to open our houses up and give them more light.”

This builder and others (described as “stumped builders” in the headline) sound like they are waiting to see what will happen in the housing market in the near future. Several factors are at play: the state of the economy and the housing industry, regional differences (Dallas vs. California), and generational differences as the Baby Boomers transition to retirement and younger buyers are more skittish.

From this article alone, it sounds like regional differences could play a big role. In places like Kansas City and Texas, house prices never got out of hand in the same way as California, Las Vegas, Florida, and Arizona. Therefore, continuing to build somewhat bigger homes might not be such a stretch, even in a tough housing market.

Also of note in this article is the suggestion that the homes may still be fairly big but they not have all the amenities like granite countertops or a deluxe bathtub. I’ve suggested before that smaller homes may not necessarily be cheaper, possibly due to more upscale furnishings or due to a more desirable urban/denser location.

Bin Laden and his McMansion

As the details of Osama bin Laden’s death have become public, some attention has been paid to the house in Pakistan in which he was staying. Here is an extended description from Politico:

The White House says the compound that housed Osama bin Laden in Pakistan was “extraordinarily unique” and had many signs that indicated he was hiding there.

The structure, which has been described as a mansion, was on a “large plot of land” in a “relatively secluded” area, a senior administration official told reporters on a conference call. The residence itself was “eight times larger” than other homes in the area, said the official, who refused to be identified.

“We were shocked by what we saw,” the official said after President Obama announced that bin Laden had been killed at the compound in Abbottabad.

The security measures at the compound were “extraordinary,” the official said, describing walls that were 12 to 18 feet high and topped with barbed wire, in addition to walls on the inside. Access to the mansion was restricted with two security gates, officials said.

Another sign was that the residents of the mansion burned their trash, unlike their neighbors, who simply put their garbage outside, they said.

The property, valued at $1 million, had no telephone or Internet access, the White House said. It was “custom built to hide someone of significance,” the official said.

When I first heard about this house in a Pakistani community, I wondered if anyone would tie this kind of unusual house to the idea of a McMansion. I found three examples. First, a columnist links bin Laden’s house to McMansion complaints in an Austin neighborhood:

And so much for the legend that bin Laden was a really big camper who survived in caves. Bin Laden was found in a huge house, in Abbottabad, Pakistan, eight times larger than any other house in the area. So if he had been hiding in the Bouldin Creek neighborhood, they would have found him years ago because people would have called the city to complain about his McMansion.

They must have a lot of complaints about McMansions in this neighborhood.

Second, a Brooklyn-based publication links bin Laden to McMansions and Martha Stewart:

As for the details, we’ll find out over time (we’re expecting a big spread in Martha Stewart Living about how you can make your house look like Osama’s Abottobad Dream McMansion).

I don’t think we’ll be seeing that particular spread soon.

Third, the blog SpyTalk has this headline for a blog post: “Mystery: Who Financed Bin Laden’s McMansion?

Why exactly would people say bin Laden was living in a McMansion? Perhaps a few reasons: the house was quite large. The house was larger than anything nearby (the relative size argument). The home was quite private with its walls, gate, and barbed wire. But this seems kind of ridiculous: the typical suburban McMansion looks nothing like this nor are its typical residents dangerous terrorists (regardless of what the movie Arlington Road might lead you to believe). But if you don’t like McMansions and you don’t like bin Laden, perhaps this makes sense…

(A Time piece suggests the house was not even a mansion:

The compound doesn’t quite fit the descriptions of a mansion, as some have labeled it. The walls are 12 feet high walls and about 13 inches thick – enough to shield the tall terrorist leader from public view. The property itself is spread over an area slightly smaller than an acre. The house is a great deal smaller, rising over two-storeys. In other ways, it was unremarkable but sometimes noticed.

So there are some differing opinions on this.)

McMansions and the “inconspicuous consumption” of the 1990s

One aspect of McMansions that is frequently discussed is the tie between such houses and larger patterns of excessive consumption. Here is a quote from a CEO of a Pennsylvania construction company that does just this:

“The new-home industry will have to respond to the market for smaller lot size and efficient home construction,” Wagman said. “We’re past the building of McMansions. That type of inconspicuous consumption is so ’90s.”

To be honest, I didn’t quite know what this term “inconspicuous term” meant. I know what conspicuous consumption as it is a common sociological term first introduced by Thorstein Veblen in his 1899 work The Theory of the Leisure Class. So I went digging around Google for the meaning of this term and how it relates to Veblen’s term. This piece from The Economist in 2005 argues that conspicuous consumption is now much more complex in wealthy, Western societies and so inconspicuous consumption still shows off wealth but in more subtle ways:

As well as traditional conspicuous consumption and “self-treating”, Ledbury Research identifies two other motives that are driving buying by the rich: connoisseurship and being an “early adopter”. Both are arguably consumption that is conspicuous only to those you really want to impress. Connoisseurs are people whom their friends respect for their deep knowledge of, say, fine wine or handmade Swiss watches. Early adopters are those who are first with a new technology. Silicon Valley millionaires currently impress their friends by buying an amphibian vehicle to avoid the commuter traffic on the Bay Bridge. Several millionaires have already paid $50,000 a go to clone their pet cat.

Who knew that spending lavishing to show off one’s wealth and status had become so difficult? In 2008, Virginia Postrel says something similar:

The shift away from conspicuous consumption—from goods to services and experiences—can also make luxury more exclusive. Anyone with $6,000 can buy a limited-edition Bottega Veneta bag, an elaborately beaded Roberto Cavalli minidress, or a Cartier watch. Or, for the same sum, you can register for the TED conference. That $6,000 ticket entitles you to spend four days in California hearing short talks by brainy innovators, famous (Frank Gehry, Amy Tan, Brian Greene) and not-so-known. You get to mingle with smart, curious people, all of whom have $6,000 to spare. But to go to TED, you need more than cash. The conference directors have to deem you interesting enough to merit one of the 1,450 spots. It’s the intellectual equivalent of a velvet rope.

As for goods, forget showing off. “If you want to live like a billionaire, buy a $12,000 bed,” says a financial-planner friend of mine. You can’t park a mattress in your driveway, but it will last for decades and you can enjoy it every night.

So we’ve moved away from garish displays of spending to more exclusive but somewhat more hidden ways to display wealth.

If we return then to the quote from the construction CEO, what exactly was he getting at? A few thoughts:

1. If he is adhering to a similar definition as The Economist piece or Virginia Postrel, then he is suggesting that McMansions were a more subtle display of wealth. But it seems that a lot of the criticism of McMansions comes from the idea that the owners are trying (desperately) to flaunt their wealth in the form of their large, garish house. So is McMansion buying a conspicuous or inconspicuous act? Might there be different opinions if we talk to the buyers/owners of such homes (after all, people need to live somewhere) versus McMansion critics (but people don’t have to live in mass-produced, poorly designed homes)?

2. He suggests that the inconspicuous consumption of McMansions took place during the 1990s. The late 1990s is where the term McMansion started to take off but the houses themselves seemed to receive the most attention from roughly 2000 to the start of the current economic/housing crisis. Perhaps the 1990s get singled out here because of a good economy in the latter half of the decade but much McMansion building and purchasing was still taking place until recent years.

(3. I wonder if he simply didn’t mean to say “conspicuous consumption” and said “inconspicuous consumption” instead.)

(Amazon also has a 1997 book that uses this term as a title: Inconspicuous Consumption: An Obsessive Look at the Stuff We Take for Granted, from the Everyday to the Obscure. Interestingly, it is written by Paul Lukas, the mind also behind Uni Watch, a blog with the tagline of “The Obsessive Study of Athletics Aesthetics.” It appears Lukas is still writing about the same topics for ESPN.com but I haven’t seen his material featured in years. When it was more prominently featured, I would read his thoughts quite often.)

The future of McMansions: torn down for smaller homes?

In a typical teardown situation, an older home, often in a pleasant neighborhood, is torn down and replaced by a larger, modern home. One Greenwich, Connecticut realtor suggests this pattern might be reversed in the future:

Pruner is also detecting a trend away from “McMansions” with massive square footage to smaller-scale well-built homes.

“I can foresee the newspaper headline: ‘McMansion taken down for more modest house,'” he said.

It is not bold to suggest that Americans want smaller homes: a number of sources, including the National Association of Home Builders, have noted this. But to suggest that larger homes will be torn down and replaced with smaller homes seems more unlikely. In order for this to happen, the McMansion would have to be relatively cheap and the property really desirable. Even after the drop in housing values, a big house is going to be relatively expensive and with many critics suggesting McMansions are also built in terrible suburban neighborhoods often made up of a lot of McMansion, I’m not sure there are many locations that fit this bill. And building a “more modest house” doesn’t necessarily mean a cheaper house – small homes can have a lot of features that drive up the price. But to tear down a larger space, whether it is a McMansion or a big box store, it seems like the conditions would have to be perfect and then it would be difficult for this to be a trend.

A narrative about McMansions at the heart of the economic crisis

With an ongoing economic crisis and housing slump, there are plenty of stories about who has been hit the hardest. But one writer suggests that perhaps we can’t just simply say that those who were excessive in their consumption and purchased McMansions are the only ones affected:

With an ongoing economic crisis and housing slump, one target of blame is McMansion buyers. But one writer suggests the economic crisis affects more people than just those who consumed beyond their means:

The nation’s lingering housing foreclosure mess is too often about folks with McMansion-size aspirations and duplex paychecks, granite counter appetites and laminate budgets.

And when we hear that one of the nation’s hot spots for foreclosures is Prince William County, we nod knowingly, thinking of the vast tracts of huge new homes and the dreamers who drowned in them.

But the other day, I met some of the folks who lost their homes or are fighting with banks to try to keep them. And McMansion isn’t what comes to mind.

The rest of the story goes on to describe the stories of a few people who lived more modest lifestyles and yet have still fallen into housing issues.

I would be interested in seeing some figures about what kinds of homes or types of owners are those who have experienced the most foreclosures or mortgage difficulties. Is it really McMansion owners or others? We hear quite a bit about regional differences, such as high vacancy rates in Florida and high foreclosure rates in certain states or cities, but less about other factors.

In reading this one particular story, I wonder why people might be quick to jump on people like those who live in Prince William County (a wealthy county – this Wikipedia list has it as the 14th highest county in the country in terms of median household income). How much of this is a moral judgment leveled against McMansion owners and houses more broadly? With this housing crisis, it now looks like McMansions are also a bad economic deal, adding to the other issues that critics say McMansions have.

The “reincarnated McMansion”

I saw a couple of pieces referring to the Reincarnated McMansion project. Here is the mission of the project:

Through a media campaign, select suitable building and willing McMansion owner.

Audit, dismantle, and rebuild using existing McMansion materials to create 2 homes, applying best practice environmentally sustainable design principles.

You can read more details of the project here. And if you are a resident of Australia who lives in a McMansion, you would have to meet these guidelines to be part of the project:

  • Do you own a home that has a floor space exceeding 360sqm? (If you are not sure how big your home is, measure the outside dimensions of your home and multiply the width by the length of your building. For example, if the outside dimensions are 13 x 15 m (195sqm) and you have a second floor, your home is approximately 390sqm.
  • Does your council allow dual occupancy in your residential zone? (If you are not sure, call your council – most lot sizes greater than 700sqm allow dual occupancy)
  • Are you willing to contribute financially to the project an amount equal to the value added to the site through the Reincarnated McMansion intervention? Receive very significant service and product subsidies through project sponsorship agreements (in the order of 200K – this figure is our initial estimate)
  • Are you prepared to find alternative accommodation (or go on a holiday!) for the duration of the auditing, dismantling and rebuilding process approximately 6 months.
  • Tell us about your home, your family and why you wish to be involved in the project.
  • If you can, please attach digital images of your home.

It will be interesting to see who they sign up for this project: it would require admitting that your home is a McMansion as well as giving up your home.

If this idea catches on, perhaps we will see it imported to the United States where the housing market continues to be in the doldrums. And this is not the only team looking to reuse McMansions – perhaps these groups are forerunners of a larger trend.

A 32,000 square foot McMansion?

One aspect of McMasions is that they are large houses. But here is a description of 32,000 square foot home that is called a McMansion:

Coeur d’Alene is interested in all things Hagadone. Even dated things. So I browsed the 20-page, color-photo, online spread in the Robb Report that named Duane Hagadone’s Palm Desert hilltop hideaway as the “2009 Ultimate Home.” Huckleberries has visited Hagadone’s mega-manse before, during the construction phase, when lesser millionaires and townspeople were fighting city approval that allowed the Coeur d’Alene tycoon to construct his 32,000-square-foot McMansion in the viewplane on one of the area’s few buildable hilltops. Now, according to the Robb Report, Hagadone prides himself on having to point out the location of his spread to golfing buddies because the color schemes and the footprint make it hard to see from the plain below. Of all the items featuring Hagadone sizzle enumerated in the article, none impresses Huckleberries more than the three-sided, 4,000-gallon aquarium tunnel leading into the dining area, featuring a shark tank on the ceiling. Mebbe the shark tank is to remind well-heeled Big Fish at Hagadone’s brunches of their humble beginnings.

In my thinking, a 32,000 square foot home is simply a mansion.

So what might make this extra large home a McMansion? Based on this short description, a few possible reasons come to mind:

1. The McMansion idea refers to the recent growth in Couer d’Alene, Idaho. Could this be referring to sprawl and building on one of the areas “buildable hilltops”? (But at the same time, this hints that the home has to be pointed out because it is “hard to see” from below.

2. There is something about the quality or design of the home that is reminiscent of other homes. So it is a big home but more so looks like a copy of other homes, hence the “Mc” prefix.

3. Is this term used just because McMansion is a pejorative term?

 

McMansions are Republican homes?

In a humor/satire column in the Huffington Post, McMansions are tied to Republicans:

A Pew survey finds President Obama is polling quite well against a “generic” Republican opponent, better than George W. Bush was against a “generic” Democrat in 2003. Forty-seven percent of respondents said they would like to see Obama reelected while 37 percent opted for a generic Republican candidate. HuffPost Hill couldn’t reach “generic” Republican, Pleated Q. Pants IV, at his McMansion in suburban Columbus for comment. We hear he was shopping at a big box store and thinking about national security.

This is an interesting mix of characteristics: the “generic” Republican candidate shops at a big box store (why not say Wal-Mart? Is Target too trendy?) in central Ohio and lives in a suburban McMansion. There may be some truth to some of this: Joel Kotkin argued after the 2010 election that Republicans won the suburban vote even as both parties for fighting for this demographic.

I have seen other cases where McMansions are tied to Republicans. What exactly about the McMansion is Republican: the size? The bad architecture? The sprawl? The suburban lifestyle? The three (or more) car garage? The big mortgage? The wealth that made the house purchase possible?

What would a Democratic characterization in the same vein look like? In terms of the housing unit, how about an urban loft or a refurbished rowhouse or brownstone, all in a gentrified, atmospheric, and trendy neighborhood?

Are Section 8 vouchers now being used for McMansions?

WalletPop has a story with a provocative opening line: “In what may be one of the strangest twists to the housing market crisis, Section 8 housing tenants are moving from urban housing projects and into high-end condo complexes and single-family McMansions that just a few years ago sold for hundreds of thousands of dollars.” The premise makes some sense: in an unstable housing market with a lot of potential for vacancies and foreclosures, landlords are looking for steady money. While Section 8 users were “treated by landlords as the tenants of last resort” in better times, now landlords are looking for this consistent money from the government.

But as I read this article, I tried to figure out where the McMansions come into play: most of the examples here feature Section 8 users moving into nicer condos or apartments, not large homes out in the suburbs. So are Section 8 vouchers really be used for McMansions, which at the most basic level are large, single-family homes? Does a Section 8 voucher provide enough funding to allow people to live in McMansions, even ones with reduced prices? There is not much information here to back up this assertion although it does sound as though the housing crisis has allowed Section 8 users to access a broader market.

Also, the headline of the article, “Section 8 Tenants: the Housing Market’s Salvation?,” doesn’t really address if there are enough Section 8 vouchers to help the broader housing market. For this to happen, the federal government would need to free up more money for more people in this housing assistance program.

From former suburban home to authentic home to be restored

What happens to suburban homes that were once on the outskirts of the big city? One writer describes the 1927 rowhouse she and her husband bought in Jackson Heights (part of Queens, New York City) and their plans to restore it:

Friends warn me this will be a lifelong endeavor. But my husband and I have always preferred houses with some history in them (this is our fifth, and maybe last, transaction). I suspect it’s a rejection of my New Jersey McMansion rearing.

To get a better sense of this house’s past, I turned to Daniel Karatzas, an agent with Beaudoin Realty Group and the local historian. He wrote the book, “Jackson Heights – A Garden in the City,” which sits on our coffee table. Well, it used to. Now it’s in storage.

Our house, Karatzas told me, was designed by Robert Tappan, “one of those unsung architects” who helped develop the neighborhood into a slice of suburbia just a few miles from midtown Manhattan.

“It wasn’t like Frank Lloyd Wright,” says Karatzas. “They were building traditional styles that would appeal to upper middle-class families. They used vernacular architecture. … Tudor, French, Georgian. That made it seem the houses had been there longer than they had.”

The houses on my block first sold for between $24,000 and $28,000. If he had to liken it to a modern-day phenomenon, Karatzas said, our 1920s house might have once been considered like “those McMansions in New Jersey.”

A couple parts of this stick out to me:

1. This neighborhood was once a suburb of New York City. While the home is now 80+ years old, it is still more of a suburban setting. According to this brief history of Jackson Heights, the community was built primarily after World War I, which would have been during a large wave of suburbanization.

Suburban homes generally get a bad name, both today and historically for being relatively cheaply made and looking all the same. Perhaps this is epitomized by the 1962 song “Little Boxes” by Malvina Reynolds – here are the opening lines:

Little boxes on the hillside,
Little boxes made of ticky tacky,
Little boxes on the hillside,
Little boxes all the same.

There’s a green one and a pink one
And a blue one and a yellow one,
And they’re all made out of ticky tacky
And they all look just the same.

And yet, with age, some suburban homes can become the sort of authentic homes that people desire. This house has history but it is suburban history. While the realtor suggests this home was probably like a McMansion of the 1920s, the writer is interested in restoring and rehabilitating this home, gold-metal cabinets in the kitchen and all.

2. The primary comparison made is between this new purchase and the McMansion the writer grew up in New Jersey. We don’t quite know why this writer disliked this New Jersey upbringing but it is clear that this new home has more character than that home did. She also suggests that her father is likely puzzled by her decision to move back to Jackson Heights: “Sometimes, I suspect my decision to settle in Jackson Heights puzzles him, since he worked so hard to get out and buy a house in the suburbs.” While one generation viewed a move to the suburbs as a good thing, some people in later generations see a move back to city life (though this is somewhere between city and suburban life) as desirable.

Does this mean that the sort of suburban homes that people now call McMansions may one day be authentic and the sorts of places that others will want to restore? This idea perhaps assumes that Americans will continue to move further and further out from the center of metropolitan regions and then the older suburban homes will age and no longer be on the fringes. What is the long-term fate of McMansions: will they fall apart? By co-opted for other uses (like perhaps being subdivided into multiple units)? Become desirable reminders of the past? Become teardowns themselves and the land put to other uses?