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.

A McMansion and a Megamansion have a spirited debate

Listen as a 9,000 square foot McMansion and a 30,000 Megamansion debate their respective virtues. Who should really be called ostentatious? At least they can agree on their dislike for a nearby apartment building.

This is a funny series: you can also find a conversation between two trash-talking classic pieces of furniture, an argument between a blender and espresso machine, and two NYC bikes duke it out. Here is more about the short series:

Comedy writer Tom Saunders (Arrested Development, The Larry Sanders Show, Just Shoot Me), on the other hand, has long fantasized that the stuff around us actually talks, and he has created a series for DnA that proves it.

In Everything Talks, buildings and objects (often brand-name designer products) bicker over who’s best. They puff out their chests, brag and trash talk, trying to best their rival. The segment spotlights the thrill of rivalry and in doing so has fun with the status we humans attach to our objects.

Here is how Tom describes Everything Talks: “The idea that we could hear an actual conversation between, for example, a Vitamix blender and a Rancho Silvia espresso maker was science fiction only a few years ago. At last, a new computer app (connected to an ultra sensitive listening device) is able to translate, amplify and record otherwise inaudible discussions between inanimate objects without them knowing we are listening in!

Throw in some of the magic from The Twilight Zone and these braggart status could soon be taking over the world…

One part of this that is funny is that while humans use consumer goods as status symbols and measure themselves against others with these objects, they don’t always do this directly. This can be done through intermediaries or in one’s own head for a long time while trying to not let others know this is happening. This reminds me of the findings of the ethnography The Moral Order of a Suburb where a sociologist finds that suburbanites tend to get along by avoiding direct confrontation. In debates over McMansions, this might take the form of going to local government and objecting or writing a letter to the editor (though I’m sure there are occasionally face-to-face arguments about McMansions).

 

Financial advice for young adults: don’t buy a series of McMansions

A set of “10 Pillars of Financial Independence” includes advice about avoiding McMansions:

Therefore, their choices are to sacrifice a bit now so that in 30 years they have a home paid for and $204,958.63 in the bank, or a slightly smaller house payment and a home paid for without a good start on their nest egg. Many of the choices you make 10-20 years ahead of retirement can pay off very well when you want to retire.

I’m a firm believer in paying for your home as soon as possible. Unfortunately, beginning with a starter home and moving up to McMansion after McMansion has become commonplace; this habit can make it practically impossible to pay off your home in a timely fashion.

The general advice sounds good: beware of long mortgages for houses you don’t need. Instead, take the money you could save with a smaller mortgage over a shorter period of time and invest it.

However, the idea of people buying McMansion after McMansion after having a starter home sounds exaggerated to me. Perhaps I might be wrong: do McMansion owners tend to live in multiple such homes over their lifetime? Are they more or less likely to move than others? The illustration makes sense – don’t keep purchasing home after home that you can’t afford – and fits the idea that Americans overconsumed in the late 1990s and early 2000s. But, I would be interested in knowing more about serial McMansion purchases…

Argument: you can’t hide the size of McMansions, regardless of the design

A local debate over McMansions draws this claim about whether the size of the homes can be overlooked:

However, I do feel that we need to bring the elephant in the room out into the open so everyone can appreciate it properly. If you strip away all of the polite planning jargon about massing, square footage, curb cuts, along with most everything else gets said in those circles, and then boil it all down to its core essence, the view becomes much clearer. What we are talking about here are some very large and quite ostentatiously designed houses.

I call it Adele Chang’s Dilemma. How do you build McMansions that don’t look like McMansions? You can’t. No matter what the design style, or where you place the garage, or how you reconfigure the roof, or bedeck the place with curlicues and cornices, or shuffle the massing, or even bring in a small gaggle of winged gargoyles and lawn gnomes, the result is still going to be one heck of a big barn.

In other words, some will argue that McMansions are just too big, even if are designed well or maybe even fit local architectural traditions. Underneath those design elements will always be too many square feet. And why is this square footage so important?

We are talking about a clash between two differing cultures here. On the one hand you have the traditional version of Sierra Madre. A place where people are comfortable with what they have today and don’t view house size as a measure of their personal or spiritual worth.

The culture Adele Chang and her CETT bosses cater to, on the other hand, is a nouveau riche arriviste’ sort crowd who somehow believe that building a vanity castle on the side of an open hillside will be recognized by all of those living below as a sign of an innate personal superiority. It is a form of unchecked clodhopper consumerism that most people living here today do not respect or care to live beside.

The size matters because it (1) suggests something vain about the owner and (2) is resented by others because it is a blatant status symbol. A big new home in a community that does not want it is tied to an owner who is seen as a jerk.

Update on increasing number of teardowns in Los Angeles

The number of teardowns isn’t close to the peak of 2006 but there is increasing teardown activity in Los Angeles and this is drawing concern:

The rebounding housing market has sparked the demolitions. In November, the median price for a home in Southern California was $385,000, up nearly 20% compared with the same month a year earlier, according to research firm DataQuick. Builders such as Leonard are constructing houses “on spec,” confident that they’ll find buyers…

In the city of Los Angeles last year, builders received approval to raze 1,227 houses and duplexes from January through mid-December, according to Department of Building and Safety records. That’s 29% higher than in all of 2012, though still well off the pace of more than 3,000 in 2006, during the housing bubble…

Carlton and his neighbors want the city to take action. They are pushing Los Angeles to tighten the so-called anti-mansionization ordinance passed in 2008. Critics say it has failed to stop the construction of outsized homes that rob views, block sunlight and alter the character of established neighborhoods.

In October, the Los Angeles City Council imposed additional size limits on new houses in the Beverly Grove neighborhood. But the changes don’t mandate a particular style…

Tear-downs have long stirred controversy, especially in beach communities — once-funky towns that have seen property values skyrocket over the years amid an influx of wealthy residents, chic boutiques and cafes. Many who grew up in the area have moved out, unable to afford a house with an ocean breeze. Many who did own homes couldn’t resist cashing in.

I don’t think there is an easy answer to this, particularly in Los Angeles. Because the housing market is currently tight, teardown opportunities are attractive to builders. Additionally, there is enough money floating around for people to want to purchase expensive new homes. This, of course, alters existing neighborhoods in a way that tends to irritate neighbors who think the new homes are all about the individual owner and not about fitting in with the neighborhood. I wonder how many residents who oppose teardowns would prefer no new construction at all, perhaps going for historic preservation rather than tighter mansionization guidelines.

I’m not sure why this strikes me right now but it does seem a bit odd that California, the home of American dreams (weather, Hollywood, sprawl leading to single-family homes and lots of driving), seems to be home to so many bitter housing and land disputes. Perhaps the stakes are higher – people’s dreams are on the line – so the fights get more intense. Or places like Los Angeles and San Francisco are simply too desirable and there isn’t enough housing to go around. Or all of this helps lay bare the American tendency to want to be the last one in to enjoy the neighborhood before slamming the gate behind them to preserve the features forever.

Preferable to selling to a developer for McMansions: creating a paintball facility

One Fairfax County, Virginia couple has decided to develop their 200 acres as a paintball facility rather than let it go to developers and McMansions:

Jeff Waters and his wife could have sold her family’s 200-acre property at 6390 Newman Road in Clifton in “two seconds” to a developer to carve into McMansion lots.

Instead, they’re developing it themselves — into Fairfax County’s first paintball field. The special use permit application was submitted in June. The fees assessed: $16,375.

“We wanted to come up with some way for the property to generate enough income to justify keeping it,” Waters said. “The county wants it to stay an open space. Despite the fact that it’s taking forever, I think the county wants this to happen.”…

This will be green paintball. What could have been 40 lots, 40 septic fields and 36 new acres of impervious surface — or “1,000 pigs,” Waters said — will be a wooded game arena with a couple ancillary buildings.

I wonder if the county and/or the Park Authority would make a good offer to purchase the land itself. I would guess nearby residents would prefer paintball to more subdivisions but wouldn’t they prefer protected open space even more? As the article notes, getting the paintball operation up and running isn’t cheap (between $150-200k). And, imagine the kind of people that are attracted to paintball operations…are these the kind of people neighbors want to see? Perhaps the stick in the mud here are the current owners who appear to want to keep the land themselves – and who could always look for better development opportunities down the road.

Increasing home sizes on Chicago’s north shore due to little lower end construction?

A North Shore real estate agent finds that new homes of 2013 in North Shore suburbs are bigger than the new homes of 2003:

She continued to say that buyers still basically want everything to be large:  the master bedroom, the garage, mud room, laundry, kitchen, and outdoor spaces.  I decided to do a little checking on newly-built homes in Winnetka, Wilmette, Kenilworth, Glencoe, and Northfield.

I compared all new homes built in 2003 versus those built in 2013.  Those built ten years ago averaged 4,753 sq. ft and those built last year averaged 5,784.  That is an 18% increase in overall home size.  McMansions rule.

I went a little further and checked living room sizes.  They seem to be shrinking every time I walk into a new home and surely those numbers would be down.  Nope.  The average living room was 187 sq. ft in 2003 and 236 sq. ft in 2013.  That’s an increase of 21% – so much for the long heralded extinction of  living room space.

As for the overall  square footage of North Shore houses, the 5,784 is just an average.  The largest built home had 11,000 square feet and the smallest was 2,300.  So there is still plenty of variety if you are looking for new construction in Winnetka and other North Shore villages.

My guess is that while there is still some range of housing in these suburbs (though 2,300 square feet is not far below the average new home size of around 2,500 square feet), there was less range in 2003 versus 2013. In other words, the lower ends of the housing market haven’t recovered while large homes are still being built. Does this mean McMansions rule? Maybe – if there are enough of them in a concentrated area to be noticeable. But, McMansions can’t be attained by as many people today and they are less in number overall.