Decreasing interest in McMansions in Melbourne, Australia

The demand for McMansions has decreased in recent years in Melbourne:

MELBURNIANS are moving away from McMansions with the number of medium density home approvals in Victoria growing a whopping 109.5 per cent over five years.

The Bankwest Housing Density report shows that 23,390 medium density approvals were granted in Victoria in the past 12 months. Five years ago that number was just 11,164…

KPMG Australia demographer Bernard Salt said Melbourne, in particular, was densing up.

“A new generation of Generation Y and X have different values to preceding generation that wanted a three-bedroom brick veneer on the edge of town,” Mr Salt said.

This and other stories I’ve seen in recent months from Australia seem to suggest that the McMansion craze may have run its course. Older adults wanted to have the big house outside the city but for a variety of reasons, including a change in preferences among younger Australians, interest in smaller housing, and interest in more affordable units, fewer McMansions have been built.

What will be interesting to observe is whether the McMansion paths in the United States and Australia diverge in the future. Does the average Australian want to join the United States and leave a legacy of McMansions?

What is the most McMansion-y feature of a McMansion?

A Chicago area McMansion prompts Curbed Chicago to ask which feature truly makes a McMansion:

What is the most McMansion-y thing a home can have? Gaudy ornate interior styling? A swimming pool and tennis court? A grand staircase, a home theater and a four car garage? How about all of the above. Some people want to make a statement with their home, and this one is a testimony to money and opulence. Did we also mention that it is located in the middle of nowhere? Built in 2004, this 15,500 square foot five bedroom, seven bathroom home epitomizes the McMansion boom in the far suburbs from ten years ago. The listing says that the original cost to build this modern day Richie Rich palace was a steep $6.5 million. It could be yours today for $3.2 million.

Those are some features. I might vote for the 5 story turret as the most McMansion-y part.

I think a good case could be made that this is beyond McMansion with over 15,000 square feet and the neighborhood has really big lots. And, what exactly do $1,050 monthly HOA fees get you? But, interestingly enough, it is quite close to I-94, Gurnee Mills, and Great America so it isn’t too far from a lot of people.

Rebuilding the Hamptons, one expensive teardown at a time

Here is a clear example of American’s preference for new homes over older ones: buying a new home in the Hamptons is much preferred to having an older home.

From Westhampton to Montauk, buyers (and renters, too, especially those willing to write a six-figure check for a summer spot) are on the same attitudinal and aspirational wavelength: new is better, more sustainable, and infinitely richer in amenities than old…

The look of the homes is evolving as well: modern is making a comeback, but modern in the guise of barnlike. “The modern barn is the Hamptons equivalent of the TriBeCa loft,” Ms. Comnas said…

Sure, many of these new houses have classic cedar shingles on the outside, but inside they are chic tabernacles of all that is design-forward, indulgent and technologically precocious. The middlebrow bungalows, Capes and ranches of yesteryear are disappearing, victims of the wrecking ball, fast becoming the most popular tool in the builders’ kit. ”Unless a house has really good bones or is grandfathered closer to the ocean than you’re allowed to build today,” Mr. Davis said, “there’s often very little reason to renovate.”…

“I’m seeing that people prefer new because they want to be the first to use everything in a home,” he continued. “New means instant gratification.”

Sounds like a lot of money is waiting to be spent at the Hamptons. I’ve seen numerous articles from the last few decades about people trying to hold on to older homes in this area but the teardowns appear to be relentless. I’ve never quite seen a footnote like the one posted at the end of this story:

Not every buyer chooses immaculate new construction. The recent sale for $75 million of the 84-year-old Wooldon Manor in coveted Southampton Village set a Hamptons record as the highest for a stand-alone home on a single lot.

Is the purpose of the footnote to reassure that at least one buyer has some sense of history? (And it only took a $75 million home to have some sense!)

More broadly, do teardowns cease to be a public issue when all or most of the homes are teardowns? Plus, are these not really McMansions because they are not mass-produced and require so much money? It makes me wonder if the truly wealthy get a pass on such homes while those who are more middle- or upper-middle class bear a lot of the criticism for trying to imitate the truly wealthy…

If McMansions are socially unacceptable, is it okay to make your home look bigger?

A major critique of McMansions is that they are too big. But, how far can a non-McMansion owner go in making their own home seem bigger? For example, check out this list of tips for making spaces seem larger, or smaller, depending on your needs.

Square feet is the typical way that space is defined in a home: a higher number means more space. However, as this list notes, there is much can be done to define interior spaces. Owners don’t want their main rooms to feel or look too cramped but at the same time don’t want large spaces that are ill-defined and dwarf the participants. Furniture comes in all different sizes and can be moved in a variety of ways. Wall hangings and other artistic touches can draw or deflect attention. So how big of a home should someone buy to feel like they have a comfortable amount of space? While I suspect interior designers, environmental psychologists, and architects would suggest there is no one-size-fits-all answer, there is clearly some sweet spot between tiny houses and micro-apartments at one end and McMansions at the other.

Seniors don’t want McMansions; they want ranchers and ADA friendly townhouses

A Maryland real estate agent looks at recent figures about the number of aging Americans and what is being built and asks if there is enough of certain kinds of housing:

After I read these facts I thought to myself, why aren’t more builders building what the greatest generation wants – the rancher home or townhouse that is “senior ADA friendly and energy efficient” ?

This is an interesting set of options:

1. The rancher. The legacy of this home dates back to the early to mid-1900s when Americans sought easier to build homes amidst housing shortages and quick-growing suburbs as well as relatively clean and straightforward design. The advantage for older residents is a lack of stairs and all of the house on one level. Of course, there are ways to make ranches more unique – features like vaulted ceilings or wings with master suites or basements – but they are relatively simple homes.

2. Townhouses provide several advantages including newer construction and homeowner’s associations which take care of exterior maintenance as well as yard work. However, townhouses are not necessarily cheap (particularly if they are all ADA friendly and energy efficient) monthly homeowner’s fees might make it less of an option for lots of people.

The aging population will present a unique challenge to the housing industry: who will purchase all of the homes owned by aging Americans and what will the housing options be for their later years?

McMansion Appreciation discussion thread

This is rare: check out reasons some people appreciate McMansions and newer (90s to today) big homes.

I actually like 2 story foyers and tall ceilings. Not sure what everyone else thinks…

Second floor laundry room
a real master bathroom with seperate tub, shower and toilet room…

Duct work in the proper places and not added on later.

Tall basement ceilings

And some snark sneaks in here and there:

I like that they make you appreciate how nicely folks built in the US in the 1930s.

There is clearly a market for such homes but it is difficult to find people who openly state the reasons why they like the features of McMansions that many critics dislike. Who probably the most of this information (that would be interesting to analyze)? Builders like Toll Brothers who have successfully sold big houses for years.

Parody: Nazi leader loses the equity in his McMansion as the housing bubble bursts

One of the YouTube parodies of the 2004 German movie Downfall features Hitler lamenting the effect of the declining housing market on his new McMansion. Here is a small part of Hitler’s complaints:

Real estate only goes up! My broker told me it only goes up! I cannot believe I’m going to have to sell my house before I can flip it for a profit. That bimbo said I could always refinance before the rates went up! I’m going to have to sell assets to raise cash. I’ll love my vintage Camaro SS! I got that car with my home equity loan along with my flatscreen TV and a bunch of other toys!

Question from military official: But you didn’t put any money down, how can you complain?

Response: Everyone was doing it! I needed a nice car and a new television!

Question from the same official: What about all the people who lived within their means?

Response: Screw them. I invested in that house to live the life of luxury I am entitled to! There was equity in the house! I thought that renters and conservative homeowners were suckers for not jumping on the credit gravy-train. I was going to flip it and my investment would double!

And on it goes. Some interesting commentary on the housing bubble. Of course, the housing bubble didn’t just affect McMansion owners but they are often blamed for inflating the market with big houses and big mortgages that they couldn’t afford. Putting these words in the mouth of the most recognized evil person in recent human memory only serves to drive home the argument…

Harvard historian addresses McMansions and inequality

A historian in Harvard’s Business School discusses McMansions and its connections to inequality in an extended conversation here. Some good stuff in this conversation including how top-end consumers are driving the recent comeback of McMansions, a shout-out to sociologist Thorstein Veblen and his idea of “conspicuous consumption,” the idea of a national consumption tax, and how capitalism finds a way to move forward, including creating some inequality.

This is a reminder of the kind of smart and lively conversation that is possible on public radio…

Americans want the “New Old House,” an older-looking home with McMansion amenities

The Wall Street Journal describes the trend of architects and builders putting together homes that look old and have character but have all the latest features:

“The first words that come out my clients’ mouths are, ‘We’d love to have a real old house. We just can’t find one,’ ” said architect Russell Versaci, who runs a Middleburg, Va.-based practice. “And the second thing they say is, ‘We are so sick of McMansions. We just want to get out and get back to reality.’ ”

What architects like Mr. Versaci—along with certain discriminating prefab builders and house-plan companies—offer instead is known as the New Old House: a sanely proportioned residence that’s historically accurate on the outside, but conceived for the needs of modern Americans on the inside. Austere Greek Revival farmhouses with roomy island kitchens. Time-travelesque Craftsman bungalows with startlingly open floor plans. Walk-in closets designed to hold more than a few Civil War-era muslin petticoats…

The exhibition is timely. According to Amy Albert, editor of Custom Home—a Washington, D.C.-based magazine that caters to architects, designers and high-end builders—a hankering for authentic traditional residential design is one of 2014’s big trends. That said, “People aren’t seeking exact replicas of historical houses,” she added. “They want architectural purity in the elevations and the details, but inside they want connectivity and open floor plans.” Discerning homeowners, she said, are demanding that custom builders bone up: “Mixing a Palladian window with a Craftsman column is not going to cut it. Even if people don’t have the vocabulary to articulate why it’s wrong, they instinctually know it is.”…

Both Mr. Versaci and Mr. Schafer acknowledged there’s something potentially inauthentic about recreating oldness, especially if you go to the extent of simulating patinas on stone (using coffee) or, as Mr. Schafer mentioned, importing $50,000 mature beech trees so your New Old House’s landscaping doesn’t look too new. “Making a mirage is an issue,” said Mr. Versaci. “My personal preference is to let a house age through natural processes. If you choose quality, natural materials like unlacquered brass, they will eventually age. But some 21st-century Americans, who are used to ‘add water and serve,’ just don’t want to wait.”

One of the more interesting parts of the new second edition of A Field Guide to American Houses is the last section on newer houses, dubbed Millennial Mansions, which discusses the differences between an authentic looking older home and a fake looking older home. For example, a new home in a Craftsman style might not have the correctly proportioned pillars on the porch or might be built on a slab when such older homes in this style usually had a basement.

Yet, the problem with historicity is not just about recreating the past. There is also an odd lack of interest in a historic interior as it is all about the exterior. If anything, this just reinforces the same mindset these people criticize about McMansions: it is all about making an impression with the exterior and then having a flashy interior. Would the people who complain McMansions don’t provide a good psychological fit make the same complaint about these new old houses?

Also, are these New Old Houses much smaller than the average McMansion?

Designing a McMansion that actually contains four townhouses

Check out a Fairfax County, Virginia McMansion that was intentionally built to contain four townhomes:

This is the Great House, a four-unit townhouse designed to look like a large, single-family home. Like DC and Montgomery County, Fairfax requires developers to build affordable units in new developments, but they often stick out like a sore thumb. When Carrington was being built in 2001, the county worked with builder Edgemoore Homes to help subsidized, $120,000 townhomes blend in with homes several times as expensive.

Each Great House is comparable in size to its neighbors and uses the same materials. But instead of one, 5,000 square-foot house, you have four, 1,200-square foot townhouses. Only one of the doors faces the street. A driveway runs around the back, where each townhouse has a two-car garage…

The Great House could be a particularly useful housing type as the region grows. A recent study from George Mason University’s Center for Regional Analysis estimates that the DC area will need 548,000 new homes over the next 20 years. About half of those units will need to go in the District, Montgomery, and Fairfax counties. And 60% of them will need to be townhouses or apartments…

Those things don’t really matter to neighbors who spend lots of time and effort to “maintain the integrity” of their single-family neighborhoods. But seeding their neighborhood with a few Great Houses that provide housing diversity while blending in could be a compelling alternative to building traditional apartments or townhouses there instead. Of course, they aren’t possible under most zoning laws, which only allow single-family homes in “single-family neighborhoods.”

This sounds like a fascinating compromise: help provide cheaper housing in a region that needs it while at the same time keeping the single-family home character of these neighborhoods. I wonder just how many “Great Houses” a typical suburban neighborhood could handle without social life changing or the McMansion owners complaining a lot.

I also suspect that some would argue building townhouses that look like this only perpetuates some of the problems of McMansions, including bad architecture and emphasis on sprawl and auto dependence. At the same time, a key factor in helping affordable housing succeed is that it needs to look like normal ousing so it doesn’t stand out and draw the attention of nearby residents.