Tag Archives: McMansions

Uptick in SUV/light truck sales alongside increase in big houses

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Following up on a supposed McMansion comeback, Jordan Weissmann notes that SUV sales have also increased:

And how about those gas guzzlers? They’re on the rebound too. More than 51 percent of new autos sold today are light trucks, a category which includes SUVs. That’s right where we were in the Spring of 2007, though below the all-time peak of around 6 percent.

Truck_Sales_Fred.png

Now some caveats. The light truck category also includes increasingly popular crossover vehicles, which share some of the space and styling of SUVs, but are more fuel efficient. So the big cars being bought today aren’t quite the same as the big cars that were being bought yesterday. Meanwhile, mortgage credit is hard to come by, and perhaps as a result, the average new home buyer is a bit richer than before the crash, according to the NAHB’s data. That might partly explain our growing abodes, since wealthier families tend to buy larger homes. And as recession-scarred Millennials start entering the home market, there’s a chance they’ll start opting for smaller houses, as some real estate experts believe they will.

But sometimes it just feels like we never learn.

This builds on one of the most common critiques of McMansions: they are part of a package deal of excessive consumption that includes SUVs, bulk purchases at big box stores, and oversized food portions. There is little doubt that Americans consume a lot, particularly in comparison to many other nations, but it is not just about having a lot. This critique also is about being green and asking whether these levels of consumption can continue or could be extended to all that many other humans before resources run out. And, it often seems that there is a moral argument underlying this critique: should people have this size house and this size vehicle? This is why I think it would get really interesting if McMansions could be much greener (sustainable materials, low energy usage, less reliant on automobiles and built in denser areas) and SUVs could be more fuel efficient (is 40 mpg doable?).

Assessing “The Return of McMansions” in the NYT

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Following up on the same data behind the CNN story on the McMansion comeback, the NYT looks more closely at the characteristics of new houses in 2012. Here is my summary:

-Housing starts were still down in 2012. Looking at the graph with housing start data since 1973 shows that the last few years have been quite different.

-The homes built in 2012 were bigger: the highest median square footage ever of 2,306 square feet, 41% of the houses were four or more bedrooms (a new record), and 30% of new houses had 3 or more bathrooms (also a new record).

My thoughts on this data:

1. This is not a big surprise. While housing starts are way down, wealthier Americans and others have still been able to buy large new homes. Again, Toll Brothers is doing just fine. On the other hand, the lower ends of the housing market are not doing well.

2. It is interesting again for people to pick up on the highest-ever median square footage for new houses. For years, journalists and others have looked at the average square footage which is bit down from its high several years ago. Perhaps the median is now alluring because it is at its highest point and therefore can be linked to McMansions and American excess?

3. More houses have more bedrooms and yet the average family size in the United States has decreased in recent decades and more Americans are now living alone. So what are these bedrooms being used for?

 

CNN says “McMansions are making a comeback” but the data is limited

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CNN reports that McMansions just may be on the way back:

During the past three years, the average size of new homes has grown significantly, according to a Census Bureau report released Monday. In 2012, the median home in the U.S. hit an all-time record of 2,306 square feet, up 8% from 2009.

During the recession, Americans downsized and the average new home shrunk in size by 6% over two years to 2,135 square feet. At the time, many industry experts said the days of the McMansion were over.

The shrinkage was supposed to indicate that a new era had begun, with young buyers seeking to live closer to urban cores and settling for smaller places and baby boomers downsizing after their kids had flown the nest.

But it wasn’t that consumers wanted less space, many just couldn’t afford more, said Jeffry Roos, a regional president for home builder Lennar. And now that the economy is improving, they’re demanding bigger homes again, he said.

This is what I suspected might happen: once the housing market picked up again, some Americans would go back to buying bigger houses. But, this article has a few problems as it relies on (1) the median home size and (2) talking to several large builders.

Regarding home size: the figures cited more often is the average home size. The average size for new houses went from roughly 900 square feet in 1950 to nearly 2,500 in the mid-2000s. The median home size might be more accurate as the extra big homes can’t skew the data as much but the average is used more often. Also, the median hasn’t changed all that much in the last few years – this is only a difference of 150 square feet, a 12×12 room. Why can’t we see figure about the number of big homes that have or have not been built rather than relying on these overall figures that are a snapshot of a varied housing industry?

Relying on just a few large builders also does not reveal the big picture. The builders cited, particularly Toll Brothers, are big players but the housing market has a lot of different builders and developers. Overall, how are lots of different builders feeling about big houses? Are they actually building these bigger houses? What do real estate experts say? The news for Toll Brothers has looked good recently but there is more to the big house market than just Toll Brothers.

This seems like an article that would benefit from better data and also may not really be able to be written until some more time has passed and the trend is more clear. In the meantime, simply invoking the term McMansion and discussing a possible trend is apparently enough…

UPDATE 6/5/13: As the CNN story is repeated across the web, there is some confusion. For example, look at how this retelling mixes the idea of an average or median:

A new Census Bureau report says the average size of a new home has grown eight percent in the last three years, up to a record 2,300 sq. ft. in 2012…

According to the National Association of Homebuilders, buyers prefer a median home size of just over 2,200 feet, in line with the Census average.

Two different figures for the “middle” size mean two different things…

Wait, the good episodes of Arrested Development are like fully furnished McMansions?

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One commentator suggests fans of the new season of Arrested Development should be patient and then makes an interesting comparison:

Stay cool, Internet. Arrested Development‘s new Netflix-delivered season may prove to be great yet.

Within hours of the streaming service dropping a 15-episode Bluth bomb, critics and fans rushed to proclaim the new episodes as substandard. Mere model homes instead of the fully furnished McMansions that they had watched and rewatched over the past few years. And while I certainly count myself amongst the fans who feel at least a wee bit disappointed by the new episodes, it’s still far too early to jump to conclusions about the episodes’ quality or legacy.

You see, Arrested Development is a unique show. While most sitcoms rely on simple setups and punchlines for their laughs, this is one show that runs amuck on the formula.Punchline often come before setups, and it’s not uncommon for objects to regularly flash across the screen and get call-backs several episodes (or even seasons) later. Basically: Many of the show’s jokes were simply not designed to make any sense the first time you see them.

As someone who has studied the use of the word McMansion, it is unusual to see someone making a favorable reference to McMansions. In this article, fans of Arrested Development are waiting for the “fully furnished McMansions” which are compared to the good episodes of the show. This is odd enough in itself. But, there is an extra twist. The show itself has commentary about McMansions. As Wikipedia puts it, “The Bluth family of the television series Arrested Development is in the business of building opulent-looking sub-quality housing.” Part of the show’s comedy is that this family who involved in a quintessential American industry, building homes, is so dysfunctional. They provide the American Dream but live a wacky version of American family life.

I also suspect that many fans of Arrested Development would not be fans of McMansions. The sort of arcane and long-form humor (see the running jokes here) of the show doesn’t exactly endear itself to the masses.

Housing recovery more than just the McMansions of Toll Brothers?

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One analyst suggests the housing recovery in recent months is more than just an uptick in McMansions and big homes:

The housing market appears to have recovered from the depth of its decline. Toll Brothers (TOL) reported a whopping 46% jump in its latest earnings report and Home Depot’s (HD) earnings soared 18%. Today the National Association of Realtors reported that April existing home sales surged to their highest level in more than three years…

Michael Santoli, senior columnist for Yahoo! Finance, says the housing recovery seems to have a new leg based on a scarcity of supply coupled with low interest rates and growing demand.

“This can feed on itself for a while,” says Santoli, “not just with regard to Toll Brothers, which makes higher end McMansion-type houses, but across the industry.”

Santoli says not to expect a steep rise in prices from here despite a “bottleneck of demand.” And don’t expect all housing-related stocks to surge.

It would be helpful to see more exact housing figures at different levels of the market. Big homes seem to be doing okay as evidenced by the strength of Toll Brothers. But, the lower ends of the market don’t seem to be recovering as much as underwater mortgages lead to limited supply and hold the housing market back. When the housing market is truly recovering, shouldn’t a broad swath of Americans benefit? Or, are we seeing a fundamental shift in American housing where middle and lower-class residents have continuing difficulty in purchasing homes?

One way to destroy the planet: “heat a McMansion”

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Heating a McMansion is part of a list of 12 ways of “how to destroy the planet”:

The easiest way to waste extra energy in a large home is to keep the air conditioning and the heater on all the time, and adjust them both up until you’re comfortable. Space-heating makes up nearly half of the average home utility bill.

Heating water uses up more energy than anything other than heating air. For the profligate, that means long showers and always setting the washing machine for whites.

Perhaps this is why there is more interest in energy efficient homes or even net-zero energy homes. This argument would be even stronger if there were some numbers to compare larger and smaller homes. How much more energy does an average 3,000 square foot require compared to an average 1,800 square foot home? Or a 5,000 square foot house versus a 2,5000 square foot home?

One way around this would be to have home sellers include average utility bills as part of the documentation or listing of the property. Think of it like a MPG rating for a car – homeowners should also have the ability to assess the energy usage. Going further, home sellers might also list comparisons to other nearby homes. I’ve seen reports that using smart energy meters that give homeowners comparisons to their neighbors helps reduce usage so why not also make it part of the real estate process?

New buyers looking for luxury amenities rather than giant homes still focused on consumption?

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More home buyers today may be choosing amenities over big houses:

Oversized McMansions are history. Instead of big houses with rooms that might seldom — if ever — be used, builders are offering luxury amenities that add to comfort and enjoyment for years to come.

How about a Woman Cave? Other innovations include separate suites for in-laws or “boomerang” children who return home for a time after college or maybe a divorce, luxury walk-in closets and gourmet kitchens that make even a microwave dinner feel special.

“Two things sell homes — baths and kitchens,” said Peder Jensen, director of sales for Nashville’s Jones Co., which recently introduced the Woman Cave…

In addition to lots of granite, Dock Street offers kitchens with double ovens and gas cooktops. Master closets have a California Closet organizer.

“It’s sexy to have a nice master closet,” said Dan Kingsbury, project manager and principal broker at Tollgate Village. “It adds a ‘wow’ factor.”…

“Years ago it was all about square footage. The more the better. Now people want to downsize but upgrade,” he said.

Critics of McMansions have argued for years that the homes are more about being impressive rather than being useful. Additionally, McMansions have been viewed as symbols of excessive consumption. Yet, do these smaller homes with upgraded amenities really get away from this? While the amenities might be more understated and more functional, these amenities are likely not cheap and builders and developers can boost their profits on all sorts of upgrades. In the end, aren’t both the McMansions and upgraded amenities still about consumption, whether it is directed at visitors and possible buyers versus turned in on the homeowners themselves?

Purchase McMansion merchandise from UrbanDictionary.com

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You can purchase mugs, magnets, tats, and even beer steins with UrbanDictionary.com’s definition of a McMansion. Here is their definition for McMansion and an example of the word being used:

Definition: A loser’s term of jealousy for a nice house he or she can never afford.

Example: “Did you hear how well Susie’s doing? You know we used to all make fun of her in school, well I hear she’s got a good job and just bought a beautiful new home.”

“Yeah, she’s just the type who’d buy a McMansion. I’m happy with my double-wide in the trailer park, it’s more ‘real.'”

It is what you might expect from UrbanDictionary: snarky and turns the term around from its typical critic of the homeowner who would dare purchase such a garish and unnecessary home. Additionally, the claim that a double-wide trailer is more authentic is not what any critic of McMansions would actually say.

So, how many of these items with the term McMansion have been purchased? Any? The t-shirts are rather bland and who would want to wear such commentary? These items seem destined to be clever gifts that then aren’t used much…

Owning a McMansion gives you more of a voice in society

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One Iowa resident suggests McMansion owners have more of a voice in society compared to the marginalized:

There are segments of our population that feel isolated and powerless because it seems no one is listening to their message. Unfortunately we even have a name for them, the marginalized. What exactly does that mean? These are the groups that are left out and not listened to. Examples abound such as the homeless, mentally ill, people with disabilities, inmates, children and the elderly.

For a country so rich in many ways, we have lost the luster by treating those without a voice as if they were not worthy. It speaks volumes about what we do honor.

Is it most important how much money one makes or how powerful they are? Who has the biggest McMansion and the most cars?

Who can boast that they have several vacation homes and multiple residences? Who has a golden parachute ready to be opened when the business goes under and many are left without employment?

There is one idea behind this reference to McMansions that is common but one that is not. First, the common idea: that owning a McMansion is about displaying wealth and status. Critics of the homes suggest those who buy them simply want to show off their money and do so by purchasing homes that are meant to impress. This ties in with images of Americans being obsessed with keeping up with the Joneses, consumption, and materialism.

The second idea is not as common. What if owning a McMansion is more about inequality and who has what resources in society? Even critics who argue McMansions are about people chasing status tend to argue that these people should buy more architecturally sound homes that are less garish. What if McMansions are part of a whole system that privileges those who can purchase homes, provide their children with plenty of support, and enjoy some luxuries in life? This idea does not come up very often. Perhaps this is because the idea implicates owning expensive single-family homes more broadly. Perhaps it is because plenty of Americans still like the suburbs and their private spaces. Regardless, thinking of McMansions more as part of the issue of inequality then could get into ideas how money should be spent, how we should build homes and neighborhoods, and what it means for more people to live the good life.

Australian expert says McMansions should be divided into apartments

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An Australian expert tackles the problem of McMansions and affordable housing:

Western suburbs “McMansions” should be converted into apartments to help deal with Perth’s population growth, an expert says.

Leading WA environmental scientist David Kaesehagen said walls or divisions could be built within big properties in the most affluent suburbs to add to housing stock in a rapidly growing market…

The Australian Bureau of Statistics has forecast Perth’s population will grow from 1.8 million to 4.2 million in the next four decades…

Mr Kaesehagen said with the right laws and incentives, owners of large mansions could be persuaded to divide their properties. “This is a way of using existing built form to increase density without introducing high-rise or changing the aesthetic of these established suburbs,” he said.

This is not the first time this has been suggested but I have yet to see a community or significant number of people push for this. I suspect it would be really difficult to do this kind of retrofitting in suburbs often so concerned about property values and density: who would want to be the first resident to have your house subdivided as your neighbors look on and wonder about their housing values? How much would it cost to convert larger homes into multiple units when they were originally intended for single families? This might work best in McMansion neighborhoods that are abandoned or not yet opened (each of these would pose their own set of problems) so there would be no community members in opposition. But, then why not build higher density developments in the first place?