Uptick in McMansion type cemetery plots and mausoleums?

Sales of big houses are on the rise as are sales of expensive cemetery plots:

The generation that brought us the McMansion is now reviving the McMausoleum. As more boomers contemplate their final years, some are spending sums of $1 million or more to buy or build spacious resting places in exclusive historic graveyards, as Stefanos Chen of The Wall Street Journal reports this week. The result, says Chen: An eruption of bungalow-sized luxury tombs, flanked by colorful statuary (think roller skates and Fender Stratocasters) in memorial parks previously known for their grim sobriety…

For Americans, big spending on burial today is more an issue of location, location, location. Older cemeteries that already host the remains of prominent people are able to command premium prices for their dwindling supply of plots. Ray Brandt, a 66-year-old attorney, talks with Chen about his $1.1 million mausoleum in Metairie Cemetery in New Orleans—where the plot alone can cost $250,000. How do you get from there to seven figures? For starters, the lot is bigger than any New York City apartment I ever lived in, at 1,024 square feet, with resting space for 12. “There will be two sets of bronze doors, one of which will open to a back patio with picnic-style furniture and a view of a lagoon,” explains Chen. “I guess it’s the last house I’ll buy,” says Brandt.

Even boomers with smaller budgets are influencing the look and layout of cemeteries. In the Hollywood Forever cemetery in Los Angeles, one of the most common requests is to be buried near the grave of Johnny Ramone (born John Cummings), whose plot features a bust of the late punk rocker wailing on his guitar. (Ramone, who passed away in 2004, isn’t actually buried there yet, but the cemetery says his ashes will be moved there along with his wife’s after she dies.) Those who can’t be near such monument statuary are increasingly asking for equally distinctive décor, Chen reports, custom-ordering, say, a bust of a Greek warrior or a frieze of flamenco dancers.

Some thoughts:

1. I think this is a convenient story-line: boomers who like McMansions also like big burial sites. While there is an attempt in the second paragraph of the story to suggest other American generations have also liked big plots, the hook to the story is that the boomers spend excessively.

2. There is little to no data in this story suggesting there is a real uptick in the sales of these large plots.

3. Does this mean that even more than ever those with money to purchase such monuments will be remembered much more than people who choose cremation?

4. This story hints at another issue: historic cemeteries are running out of space. This means they can drive up the asking price but does it also mean they are very nearly “dead” institutions? With the rise of cremations, is there a glut of space in newer cemeteries or on the whole are cemeteries slowly easing out of existence?

Sales of $1 million plus homes back to 2007 levels

A new analysis shows that the upper end of the real estate market, at least homes over $1 million, has recovered:

Home sales from Los Angeles to Charleston, South Carolina that are priced at more than $1 million are gaining at triple the pace of the broader market, according to real estate research firm DataQuick Inc. Wealthy purchasers, helped by gains in equities, are diving into real estate a year after a recovery began in the housing market when less-well-heeled buyers rushed to take advantage of record-low interest rates, said Susan Wachter, a professor of real estate and finance at the University of Pennsylvania’s Wharton School…

Sales of homes priced at more than $1 million jumped an average 37 percent in 2013’s first half from a year earlier to the highest level since 2007, according to DataQuick. Transactions priced at less than $1 million rose 11 percent in the same period to the highest since 2009, data from the National Association of Realtors show.

The $1-million-and-up end of the market usually trails cycles of the broader market because real estate purchases by wealthier buyers “tend to be discretionary spending” that can wait until economic conditions are right, Wachter said. Those homeowners usually can hang onto properties during tough times, and their houses are big enough for them to stay even if their families expand…

Homes priced at more than $1 million lost about 46 percent of their value during the housing crash, according to a Bloomberg survey of sales in the top four cities, based on valuation data from Zillow.com. Since then, their value has more than doubled. Home prices in the broader market fell to $154,600 in early 2012 and increased to $214,200 in June, according to the Realtor’s group.

At least one part of the market is doing well (the lower end is not doing as well): some expect homeownership rates in the US are expected to fall into next year.

I wonder if another reason these homes are selling at such a rate includes a perception that real estate is a good investment at this point, particularly compared to other investment opportunities that are more uncertain. This would assume that home prices would rise consistently but it would also help explain why so many investors are purchasing real estate.

Comparing teardown McMansions to “heirloom” homes

One way to argue against teardown McMansions is to compare them to “heirloom” or “heritage” homes:

THE North Shore Heritage Preservation Society says the North Shore’s municipalities need to tighten their rules around heritage homes or risk losing them to developers’ wrecking balls.

This, after the group has learned a heritage designated home in Edgemont Village has been demolished, only to have the lot listed for sale with plans for a five-bedroom, seven bathroom “McMansion” to occupy it…

Designed by noted local architect Fred Hollingsworth in 1950, the home at 2895 Newmarket Dr. was razed after the District of North Vancouver issued a demolition permit on July 3. Buildings that date back to the North Shore’s formative history or homes once lived in by important people have an intrinsic value worth protecting, the group argues, comparing the homes to family heirlooms.

“The heritage buildings we see around us are our link to our past and sweeping them away means we sweep away all evidence of where we come from,” said Peter Miller, society president. “In this particular case, we regret very much that the system permitted this to happen. It’s very sad.”…

“There is an emotional attachment that an old building has to the past. If you go up to a front door, which was there almost 100 years ago, and touch it, you can feel that people have been going in and out of that door for 100 years,” he said. “When you go up to a door that looks essentially the same but came from Rona, there’s none of that emotional connection to the past.”

This argument makes some sense: buildings and homes and the styles in which they were constructed help provide a sense of tradition and continuity with the past. Buildings are functional structures – humans need shelter – but they are also social by virtue of the social interactions and meanings attached to them. Using the term “heirloom” helps make this point by suggesting the houses are something emotionally laden that a community bequeaths to future generations.

But, at the same time, the article mentions more details about several of the older homes that have demolished. One home was a “post-modern home.” I assume this means something like a modernist home, more about straight lines and newer materials (steel, glass, concrete, etc.). Another one of the demolished homes was a 1910 home. Are a modernist home and a 1910 home of the same ilk? Other communities are facing issues of what to do with modernist homes as they may be old and automatically historic (just like McMansions might be in several decades) but they haven’t never really quite fit with more “normal” architectural styles. More broadly, what homes should count as historic?

Is this Beverly Grove (LA) home a McMansion?

As debates continue over McMansions in the Los Angeles neighborhood of Beverly Grove, Curbed LA takes a look at one home for sale in the neighborhood and a brief yet lively discussion ensues in the comments on whether the home is a McMansion. Here is the description of the home (and plenty of pictures to help you arrive at your own conclusion):

Just in time for the City Planning Commission’s vote on an anti-mansionization ordinance for the Beverly Grove neighborhood, this fine specimen hits the market. It looks like just the thing neighborhood activists are trying to prevent, though since no square footage is given, we can’t be absolutely sure. Taking the place of an (admittedly unlovely) 1927 house, this typically boxy number–or “modern, cutting edge and rearranged design with retro reclaimed wood accents,” depending on your perspective–has four bedrooms and four and a half bathrooms. Like so many of the new houses in this area, there’s an openish floor plan, loggia, small pool and spa, a nice array of balconies, and name-brand kitchen. It also seems to have kinda low ceilings upstairs, but maybe that’s just the pictures playing tricks. It’s on the market for $2.799 million.

Not having the square footage means an important piece of information is missing. Here are a few of the comments on whether the home is a McMansion (each new paragraph is a new commenter:

Normally I’d be banging the drum for keeping the neighborhoods original in style and scale, but I don’t think this one is too bad — it at least has some visual interest and doesn’t seem too overbuilt for the lot — wouldn’t object if this were my neighborhood…

Let’s not go crazy with calling anything larger than average a McMansion. It may be out of scale, but it doesn’t use mismatched home depot pre-fabbed design elements…

This house is at the high end of the lot to improvement ratio for Beverly Grove – its not over improved. But, this type of concrete and glass, shoe box design is just not appealing! Just look at the house across the street in the view photo. It has all kinds of architectural finishings that appeal to the eye, clay tile roof line, arched carports, corner rotunda, custom picture window etc…. This house looks like the lego house my son built when he was 4. Maybe that’s why its appealing to some, it resembles the lego structures built during childhood! I don’t blame the neighbors for being pissed!

The discussion primarily focuses on the design of the home. Since it doesn’t seem unnecessarily large or take up all of the lot, a number of people commented for or against its unique modern style. On one hand, it seems cohesively modern, not a mish-mash of styles for which McMansions are often criticized. On the other hand, it does appear different from the other homes of the neighborhood (of which we have one picture).

One takeaway: the term McMansion can be used as a pejorative term for a home one doesn’t like even if it doesn’t fit the “classic” definition of a McMansion.

“Real Housewives” character lives in McMansion only by fraud

A “Real Housewives of New Jersey” character lived in a McMansion and its accompanying lifestyle – but it was all a fraud:

On TV they live large — in a 10,000-square-foot McMansion full of garish baubles and expensive toys in an ode to the bad taste and excessive spending that has made “The Real Housewives of New Jersey” a Bravo hit.

It’s the lifestyle Joe and Teresa Giudice — who grew up together as working-class Italian-American kids — always hungered for but could never truly afford, sources said, even when they convinced themselves and everyone around them they could.

The Giudices’ shaky facade of massive personal wealth — increasingly fragile since a 2009 Chapter 7 bankruptcy filing — finally imploded in a spectacular way last week when they were hit with a 39-count criminal fraud indictment.

The federal charges range from allegations that the two conspired to forge W-2 forms, tax returns, pay stubs and other documents to trick banks into lending them money, to accusations of perjury and false statements in their bankruptcy proceedings.

This won’t do the reputation of McMansions any good. See the picture of the Giudice’s home about halfway through the news story: it looks like everything McMansion critics would hate including a large wrought-iron fence and gate, an elaborate front door, a roof that looks like a castle, and plenty of rooms. Yet, critics would like the symbolism: the home may have been impressive on the outside or looked good on TV but ultimately, it literally all a fraud.

So if and when they lose the home, who is going to buy it?

A simple definition of McMansions: big and “decorated to the hilt”

Another look at the supposed McMansion comeback has a pretty simple definition of McMansions:

The go-go days of the late 90s and early 2000’s gave us the McMansion, those 5,000-square-foot homes decorated to the hilt.

This keeps McMansions at the simplest level. To start, they are big homes. With the average new home at 2,500 square feet, 5,000 square feet is double the size. Second, I think “decorated to the hilt” refers not to the interior decor but rather to the garish or impressive features of the home such as large entryways, roofs with many gables, and a whole range of stone/stucco/wrought iron/glitzy features on the front.

New report says Australians to move away from McMansions, seek out smaller homes

A new report suggests Australian builders will shift away from McMansions in the next decade:

Australia’s leading builders and developers predict that an appetite for small homes will be the dominant theme throughout the coming decade, according to a new report.

Three other major trends to impact the residential housing sector in the next 10 years will be affordability, diversity and walkability.

“What leading industry players told us in our interviews is that we are seeing a maxing out of the average house size,” says Deon White, managing director of urban design and town planning firm RobertsDay, publisher of the new report.

“The trend of the McMansion is on the decline; Australians are turning away from the super-large Australian home. Instead, they’re starting to engage with the concept of the smaller home. People want to live a little more; they want less of their income drained into their weekly mortgage payments.”

This mirrors ideas in the United States where critics of McMansions and other large homes suggest the focus should move away from space and most bang for your buck to customization and community life. New Urbanists, for example, would likely approve of all of these forecasted trends. At the same time, planning for a diverse range of affordable smaller homes within walkable neighborhoods is not necessarily cheap and it requires a large change of focus than simply building different kinds of homes. To make this all happen on a scale beyond just a few new developments requires the combined efforts of builders, people in charge of zoning and regulation, mortgage providers and financiers, and buyers.

Photographing suburban McMansions around the world

See pictures of large suburban homes around the world as well as read insights about the developments from the photographer:

After six years of travel to five different continents, Adolfsson has published Suburbia Gone Wild, a new photography book that goes in and around the model homes of wealthy cul-de-sacs in cities like Bangalore, Moscow, and Cairo. His discoveries reveal a world that continues to homogenize around emerging clusters of wealth aspiring to a particularly American brand of suburban life.

It wasn’t always easy for Adolfsson to capture these oddly beautiful shots of perfectly arranged kitchen pantries and opulent living rooms. His method was to photograph the model homes inside these developments, hiring locals to pretend to be a significant other who would then distract sales reps as he snuck off to take pictures around the house…

This copy+paste behavior is a result of America’s cultural dominance over the past five decades, exported through soap operas, movies, and magazines. I also think that the “lifestyle” fills a cultural gap as many of these countries didn’t have an upper middle class until recently and haven’t established a strong identity for this growing class yet…

I came to the realization that many of the residents living in these suburbs share a common identity with residents living in similar communities around the world, whether it’s Bangkok, Cairo, Moscow or São Paulo, than they do with their fellow countrymen living outside the gates of these suburbs. I think this is the beginning of a huge global shift where national identity is becoming less relevant.

Another cultural export of the United States of America.

I like the connection to a global/Americanized/suburbanized mentality. At the same time, this is only available to an upper-income section of global society so this is a limited group. It could get a lot more interesting if these people from around the world started gathering and interacting on a more consistent basis. Perhaps this is already happening in tourist spots, conferences, places of consumption (from retail to media), or corporate offices.

There would be a lot of room for research on how this global/suburban identity then meshes with more local identities. Critics have argued that suburbs within America have their own culture, full of everything from conformity to individualism (depending on which critic you listen to over the last six decades). But, the United States is now a suburban nation so the suburban identity is quite common and is expressed all over the place from movies to TV to books to politics. It would be a lot different in countries without an established suburban ethos.

Shift from buying big homes to upgrading fixtures

I’ve suspected this for quite a while: here is some evidence Americans have moved past purchasing large homes, McMansions if you will, and are instead paying more for the finer touches in their homes.

Beginning next month, Majestic Building Products, a longtime wholesale supplier to companies such as Pulte Homes and Marriott International, is opening its showroom to the public.

Owner Jeff Jenkins said he is expanding the Leesburg-based company to keep up with growing demand for more-customized fixtures — ranging from bathroom mirrors to closet shelves.

“The whole philosophy has changed,” said Jenkins, who founded the company in 1989. “Ten years ago, everybody was out buying McMansions. People don’t care about having an 8,000-square-foot house anymore. They’re more interested in upgrading the little things.”

Those little things — door hinges, towel holders and shower doors — bring in about $9 million in annual revenue for the company. Jenkins said he expects sales to rise an extra 20 percent in the next year.

This could be viewed as a positive sign by those who decry the purchase of unnecessarily large homes: more Americans are paying attention to the interiors of their homes and making them enjoyable. Instead of focusing on size and its impressiveness and functionality, customizing the fixtures allows owners to focus more on their own personal interests and develop a home that more closely reflects their own tastes. This could be viewed as a shift away from mass-production to owners taking more responsibility and interest in their own settings.

On the other hand, focusing on the fixtures simply transfers the consumption from the larger issue of the home to the innumerable upgrades that could be made within a home. Think granite countertops, stainless steel appliances, hundreds of floor options, faucets, paint colors, and on and on. Plenty of money is still being spent on housing but instead of it going for new homes, it goes into new furnishings. As the article suggests later, the company is opening their showroom in part to help counter the fluctuations of the housing market and ensure a steady revenue stream. Can’t purchase the bigger or newer home you dream about? Instead, put that money into your current setting.

If this is all the case – and there is plenty of evidence that the new housing market is still sluggish – this hints at a possible large shift in American housing. Rather than being driven by housing starts and new development, perhaps the future in a tighter economic market is in premium fixtures and more customization of existing homes to the tastes of their current owners.

McMansions pass away quickly like reality stars, unlike stone buildings

McMansions are often assumed to a passing phenomenon. See this quote from the TV show House of Cards:

“Money is the McMansion in Sarasota that starts fallin’ apart after 10 years,” Spacey’s character, Rep. Francis “Frank” Underwood (D-Antebellumville), tells us in an on-again off-again honeysuckle accent. “Power is the old stone building that stands for centuries.”

Or this description of a common path of reality stars: becoming famous and buying a McMansion.

Anyone remember what happened when that other TLC reality show about a big family got really, really popular? Jon and Kate Plus Eight quickly evolved: In later seasons, there was a new McMansion for the family, and a posh new look for Kate. By all accounts, Here Comes Honey Boo Boo could have followed the same trajectory. According to TMZ, the network has raised their salary from $5,000 and $7,000 an episode at the beginning of the series to “somewhere between $15,000 and $20,000 an episode.” But the extra cash hasn’t changed the family’s priorities.

For one thing, a bigger house was apparently in the offing, too. “We’re told TLC even offered to help the family find a somewhat larger, more secure home, but June refused,” said TMZ. “She said she wanted to stay in the house because she makes a big deal over Christmas — decorating the house for the community. June is heavily involved in her town.” Thus Season 2 takes place in and around their same little house with the beat-up furniture and the one bathroom.

Both quotes above discuss the notion that McMansions won’t last long. It pits modern spec houses against solid stone buildings. In reality, many homes in the US are not the stone variety. Plus, we don’t quite know how McMansions will stand up in the long run. Barring natural disasters, humans can be pretty resourceful with existing structures if they want to. The link to reality stars is quite clever; the implication is these are stars who will burn brightly, purchase their McMansions, and then burn out, never to be heard from again. McMansions have more staying power than these reality stars, if just by the number of such homes that have been built.

McMansions are new in the sense that the word didn’t really emerge in popular usage until the late 1990s. These houses simply haven’t been around that long so they are newer luxury items. On the other hand, McMansions seem to have become another part of the long-running battle between old and new money. McMansion can then be a derogatory term thrown at the nouveau riche who don’t have the proper social standing to compete with old money.

All together, there is a temporal dimension to the use of the term McMansion. Critics hope they are a passing fad. Others suggest they are making a comeback or larger homes are simply what Americans desire. Perhaps we need a new popular form of housing to replace the McMansion…