$1 million plus homes continue to sell well

The top end of the real estate market is still going strong:

Across the map, the strongest growth in the residential real estate market lately is in high-end homes, according to the National Association of Realtors. In October, sales of homes at $1 million and above surged by 16.2 percent from the year before, while overall sales of homes were up by just 4.7 percent, the trade group said…

In the Chicago area, home sales in the million-and-up category were up 8 percent from January through September, with a median price (in that bracket) of $1.35 million, according to Re/Max Northern Illinois.

In Manatee and Sarasota counties in Florida (one of the leaders of the Bubble Country pack during the boom), 485 homes in the $1 million-plus category sold from January to the end of November, according to the Bradenton Herald…

His theory, apparently, is that the surging Dow has inspired confidence in average investors and has made them comfortable about putting their (other) money in real estate again, given that their savings are growing only incrementally within traditional investments.

The wealthy are still doing well in the real estate market while the rest of the market is still sluggish. How long can this trend last? In other words, could the top end of the market do well for years or longer while the bottom and middle struggle along?

Building for and selling real estate to more diverse suburbs

Builders and real estate agents are trying new approaches to match Houston’s diversifying suburbs:

Houston homebuilders, developers and Realtors are now trying to cater to this changing suburban demographic.

Realtors are taking classes in feng shui to appeal to Asian homebuyers. Local homebuilders are adding “mother-in-law” suites and casitas to their floor plans to attract Latin American buyers accustomed to multigenerational living.

Last month, Partners in Building, a Houston-based builder, announced plans to construct Mediterranean-style homes with domed roofs, Arabic-style arches and optional prayer rooms in a Sugar Land community.

“The suburbs are going to have to adapt,” Klineberg said. “These big McMansions are going to be less attractive. We need to provide more choices for people.”

Some interesting changes are likely underfoot in suburban real estate. Yet, the proposed changes may not be that large. For example, the sociologist cited at the end suggests McMansions won’t be such hot items. Maybe. McMansions could continue to thrive if they can incorporate some new styles (Mediterranean architecture) as well as new home features (prayer rooms, in-law suites). I’m guessing Klineberg means housing that is more flexible and cheaper to better suit working-class to middle-class residents who can’t afford the big suburban home yet need to be somewhat close to their suburban jobs. Again, that could go different directions: does that automatically mean more apartments and rental units or does it mean more affordable small houses, condos, and townhomes in denser neighborhoods? All together, will such changes be spread evenly throughout suburbs or will they be centered by class and race? I would guess a strong yes given the residential and class segregation present across suburban communities.

“Identical twins find identical houses”

While the full story is hidden behind a paywall, the picture you can see says it all: two identical twins found identical houses right next to each other.

I know very little about the twin literature but I wonder if anyone has made any connections regarding the housing choices of twins. The American Dream tends to promote individualism in consumption – even among mass market items – and a house that you buy is supposed to say something about you or be your face to your neighbors and the rest of the world. Do twins buck this trend?

“The 12 Most Annoying Things People Say on House Hunters”

While this isn’t a scientific study of the hundreds of episodes, this list rings true from my watching experience. Here are a few of the 12:

3. “We Love Entertaining!”
How many dinner parties are these people throwing? Kid & Play didn’t have as many house parties as those couples. You aren’t hosting the Presidential Ball, so I’m sure your terrible friends are OK hanging out in the living room and the kitchen…

6. The Walk-In Closet Joke
I didn’t realize I was watching comedy hour! You gotta love that same, stupid joke where the lady walks into the closet and she says, “Well, this should be enough room … FOR MY CLOTHES! LOL!” Sometimes the guy will say it and sort of nudge his wife in a way where you can literally see the unhappiness in her eyes…

10. “We’ve Just Outgrown Our Old Place”
There are two of you and you lived in a three-bedroom house. Mathematically, you could not be more wrong. You could remedy this by selling some of the boxes of garbage piling up all over your hoarder-y house, or just admitting you want a bigger place for no other reason than you feel like it. Or just say the old place is haunted…

12. Crown Molding
Please shut up about crown molding. No one sits in their living room and thinks “Wow, look at that crown molding. If that wasn’t here this house would be a toilet.”

There could be several good reasons for these common concerns:

1. Participants are coached to talk bout these topics. Perhaps producers are feeding them these lines. Perhaps these are the lines the producers think people want to hear about.

2. Perhaps participants have seen enough of the show that they are imitating what they have heard. When they don’t quite know how to respond (watch their microexpressions as they react and then what they say), they fall back on these “scripts.”

3. As sad as it might be, maybe this represents what a lot of Americans think when they look at new housing: they often focus on a few details (closets, crown molding, etc.) without talking much about the big picture (do we really need this house?).

All that said, House Hunters certainly follows a certain “formula” for each episode that is fairly predictable. And while viewers may scoff at the comments of the participants, it wouldn’t be the same show if you took the people out and simply showed three homes as a comparison.

Poorer suburbs the result of fewer two-parent families?

One writer argues poorer suburbs ended up in this position because the suburbs were built for two-parent families in single-family homes and poorer communities have less of these families:

Before we can understand what makes some suburbs so miserable, we first have to understand what makes others succeed. The most successful suburban neighborhoods fall into two categories. First, there are the dense and walkable ones that, like the most successful urban neighborhoods, have town centers that give local residents easy access to retail and employment opportunities. These neighborhoods generally include a mix of single-family homes and apartment buildings, which allows for different kinds of families and adults at different stages of life to share in the same local amenities. The problem with these urban suburbs, as Christopher Leinberger recounts in his 2009 book The Option of Urbanism, is that there are so few of them, and this scarcity fuels the same kind of gentrification that is driving poor people out of successful cities.

The other model for success can be found in sprawling suburban neighborhoods dominated by households with either the time or the resources to maintain single-family homes and to engage in civic life. As a general rule, the neighborhoods in this latter category don’t allow for apartment buildings or townhomes on small lots. They implement stringent local land-use regulations that keep them exclusive, and they attract families that tenaciously defend the character of their neighborhoods.

There are many differences between these two models. But the most important one is that denser suburbs can accommodate family diversity relatively well while sprawling suburbs simply can’t. Living the low-density lifestyle requires that you either be rich in money or rich in time and skill.

Think about it this way. The typical postwar suburb was built to meet the needs of two-parent, single-breadwinner families. They were full of single-family homes that were rarely built to last, and their chief amenity was privacy, which generally meant a decent-sized lawn. Maintaining these houses was a heroic endeavor, but the division of labor implied by two-parent, single-breadwinner families meant that it was not an impossible one. Indeed, the very fact that maintaining these homes was such a chore made them precious to their owners, for whom they were a store of wealth as well as a place to live.

There is little doubt that the family structure in the United States has changed from the early days of the post-World War II suburban boom to today. And, numerous suburbs have going to have to respond to these changing demographics as they think about providing housing for older residents with no kids, single-parent families, and single households which are now the most common household type in the United States.

Yet, this argument seems too reductionistic. Similar to Rodney Balko’s argument about odd government dealings in St. Louis County, Missouri, I think this article ignores other important factors in the construction of suburbs, particularly policies and zoning and behaviors motivated by race and keeping non-whites out of wealthier suburban communities.

Thinking about “The Language of Houses”

A review of the new book The Language of Houses summarizes what American houses have to say:

Lurie serves as able guide on an opening overview of basic architectural themes: style, scale, materials. Concepts such as formal and informal, open and shut, darkness and light, as well as the influences of foreign and regional idioms, become the building blocks on which she proceeds into her discussion of dwellings. We learn that the simple, unadorned, home intended to convey “green” values, often uses “old bricks and boards that in fact cost more than new ones,” while a suburban McMansion’s pricey entrance is coupled with cheap siding and exposed ductwork out back. She chronicles the evolution of the Colonial meeting house into Gothic worship sites that are mini-theaters with their raised altars, lavish pipe organs, and stage lighting. Gender differences abound: In homes and offices, men prefer what she calls “prospects”; women, “refuge.”

Lurie’s most interesting material limns trends and their policy implications. “The average new home size in the United States was 2,673 square feet in 2011, up from 1,400 square feet in 1970 and a mere 983 square feet in 1950,” she writes. “Meanwhile, though the average size of the American family has been shrinking, the size of individuals has increased.” Has modern architecture contributed to obesity with its elevators and elevated temperatures, she asks? Or this: Second homes often depart in style, décor, and locale from first homes, suggesting an inner void in our everyday lives for which we seek restitution on the weekends.

“[U]nattractive, cheap, badly designed buildings appear to have a negative effect on both mood and morals,” Lurie writes. Rundown and crowded dwellings communicate danger and neglect. Despite these seemingly obvious truths, Lurie informs us, many public buildings are designed intentionally to resist what one sociologist calls “human imprint.” These — prisons, public housing projects, factories and some offices — have few windows or doors, uniform design, and high security. To the list one might add: big-box stores, public schools, fast-food chain restaurants, airports, and low-budget subway stations. As a category, these instances of “hard architecture” occasion “anxiety, irritation and the (sometimes unconscious) wish to leave. Eventually, those who cannot get out will become restless and angry, or passive, withdrawn, and numb.”

Lurie maintains a light touch with such damning observations. But if we take them seriously, it would seem that the funding and design awards for spaces where large percentages of the population spend most of their waking hours demand greater vigilance on the part of urban planners.

Sounds like it has potential: built environments have the ability to influence social behavior. At the same time, the review suggests there isn’t much data to back up these observations and linking the direct effects of environments to behaviors is more difficult.

Perhaps the bigger issue overall is an American culture that tends to privilege efficiency, leading to clunky houses and buildings that function just fine but don’t offer as much in the way of customization and beauty. If the goal is to get a house that offers value and more space for the money, then considerations like quality materials and creating a good fit between the owners and the house matter less.

The two basic floor plans in the original Levittown

One important aspect of the influential Levittowns were the houses: simple, cheap for buyers, and could be efficiently built.

http://www.ushistory.org/us/53b.asp

The Levitts mass-produced these homes in a way that would become fairly standard among large builders. The process involved manufacturing a number of the pieces off-site and having different crews tackle each home site at different points of the home’s construction. This process differed quite a bit from the rest of the housing industry which was largely comprised of small builders who took more time with each home. While this mass process led to more uniformity (and suburban critics jumped on the architectural similarity as a metaphor for all of suburbanization), it also dramatically reduced the cost of houses. A number of initial buyers noted that they could purchase a new home in a Levittown with a cheaper monthly cost than they could rent accommodations elsewhere.

Two additional thoughts about these floor plans:

1. A fascinating aspect of these basic house models is the number of modifications made to the homes over the decades.

2. The square footage of these new homes, roughly 1,000 square feet, is unthinkable today in new homes as the average new American home is now over 2,500 square feet.

Normal people living in “America’s smartest homes”

As part of Time‘s recent look at smart homes, they profiled a number of “regular people” in different types of smart homes:

At the start of her final semester, Spratley, a 29-year-old design student, spent 90 minutes every day driving between her apartment in the suburbs and her college classes in midtown Atlanta. “It was tiring,” she says, “and it made it really tough to meet people.” So she moved into a parking garage behind her school’s main building. Literally. Spratley, who graduated in May, was one of the first residents of SCADpad, a three-dorm compound built and styled by students, faculty and alumni of Savannah College of Art and Design to prove that underused public spaces–many U.S. parking structures operate well below capacity–can be repurposed into homes. Although the 135-sq.-ft. (12.5 sq m) space felt cramped at times during her weeklong stay (“I was like, Where’s the closet?!”), Spratley found plenty to love: the iPad-controlled lights could mimic a sunset, a nearby 3-D printer made free home accessories like coasters, and the compound fostered its own minicommunity. “I had friends over to watch The Fifth Element on the ceiling of the parking deck,” she says. “It was like living in a piece of the future.”…

After marrying her college sweetheart in 2007, Miller, then 22, happily took what her friends called the “normal next step”: putting down a payment on a 2,500-sq.-ft., four-bedroom house with her new husband. But when they divorced a year later, she says, “my financial torture began.” First, she failed to resolve a messy deed situation with her ex; then the economy collapsed, and the bank seized her home. At that point, Miller, an architect, had an idea: “What if I take the $11,000 I’d have to spend on a year’s rent and build a minihouse from scratch?” She wasn’t alone: more than 70 architectural firms now specialize in helping Americans ditch their large, pricey abodes to raise low-cost, low-energy tiny homes, and Miller found starter plans aplenty online. She bought a flatbed trailer ($500), rented a 0.125-acre lot ($200 a month) and within 18 months had built and moved into her dream home, all 200 sq. ft. of it. Now Miller’s monthly expenses are $400 instead of $1,200, and she’s dating her new landlord; the two had a daughter in March. Her next project is designing a 650-sq.-ft. abode for the whole family, including her Great Dane. “I’ve realized I don’t need a big house,” she says. “I never did.”…

When retired Marine Sergeant John Peck awoke from a medically induced coma in July 2010, two months after stepping on an IED in Afghanistan and losing all four of his limbs, his skin “was so hypersensitive that I would scream if someone touched me,” he says. But once his physical pain subsided, Peck, then 24, faced a much more daunting obstacle: adjusting to everyday life in a new body. The challenges at his Walter Reed housing complex were immediately clear. He couldn’t enter rooms with nonautomatic doors, because he didn’t have hands to grab them. He’d wanted to be a chef since he was 12, and now he couldn’t reach the food cabinets–let alone prepare meals. “It was incredibly frustrating,” he says. Today, however, Peck lives in a house built by the Stephen Siller Tunnel to Towers Foundation that was designed to serve his individual needs. Now 28, he has a bathroom with a bidet, so he can use it solo, and can adjust lighting, sound and even the height of his kitchen cabinets by tapping a tablet. To be sure, there are plenty of issues his home won’t solve. “I can’t put shampoo into my hair or put shorts on by myself,” he says. And unloading the dishwasher is nearly impossible, even when he’s wearing prosthetics. But Peck draws hope from a potential double-arm transplant–and his November wedding to fiancée Stacy Elwood. For now, he says, “my house makes the little things easier.”…

Like many other people living in America’s poorest neighborhoods, Giuria, a South Bronx native, grew up at risk for obesity. He ate junk food (it was cheap) and avoided playgrounds (the equipment was undermaintained and dangerous) and gyms (he was never taught the importance of exercise). By the time he was 27, he weighed almost 400 lb. (180 kg). “It was awful,” he says. “I sprained my ankles, I couldn’t buy clothes, and I didn’t sleep well.” His brother eventually took him to a nearby fitness center, where he learned to use the elliptical. (“It was so weird–I did it backward for a while.”) But to really get healthy, Giuria knew he needed a lifestyle makeover. That’s when he learned about Arbor House, a $37.7 million, 120,000-sq.-ft. (11,150 sq m) low-income housing project going up a few blocks from his then residence. The new site emphasized active design, an increasingly popular style of architecture that’s meant to encourage physical activity. (Think visible stairwells and bright, inviting indoor-outdoor gyms.) He immediately applied for residency and moved in last June. Now 30, Giuria has continued to lose weight–he’s almost down to 200 lb. (90 kg)–by running and playing alongside his wife and three kids (including Xzavier, right). “This will make it second nature to them to be healthy,” he says. “It won’t be foreign to them like it was for me.”

Some interesting options with several common themes:

1. Homes more customized to individual dwellers. Some of this can be accomplished with technology but design can also help. People living in the home get the benefits of using the space better as well as having the home reflect well on them.

2. Smaller spaces. This could be the case because people want less space (limiting consumption, more green) or they can afford less space (often in more urban areas).

3. Greener, more sustainable building starting with lowered utility costs to houses that encourage more activity and are built using different materials.

My big question for all of these options is whether they could be produced and lived-in on a mass scale.

A big uptick in large homes constructed in recent years? Maybe

With the average size of new American homes at record levels, just how many big homes have been built in recent years?

As a result, the market for smaller homes, of 1,400 square-feet and less, has shrunk to just 4% of homes built. That compares with 9% in 2005…

Meanwhile, extremely large houses — 4,000 square feet and up — have been making up a much larger slice of the new homes built.

Last year, these mega homes accounted for more than 9% of new homes. In 2005, they represented 6.6% of homes built.

Houses that are a little smaller but still verging on mansion territory, those between 3,000 and 4,000 square feet, made up 21.7% of new homes in 2013, up from 15.6% in 2005.

So these are changes in the housing market: more large homes built in recent years, fewer small houses constructed. But, are they big changes? The decrease in homes under 1,400 square feet is 5%, the rise in homes over 4,000 square feet is just over 3%, and the increase in homes three to four-thousand square feet is somewhat bigger at 6%. Does this mean McMansions are back? The data is up for interpretation with figures that could likely support either side: there are shifts taking place versus the percentage changes are limited.

New American homes bigger than ever in 2013

Census data shows new American homes grew in 2013 to nearly 2,600 square feet:

According to just released data, both the median and average size of a new single-family home built in 2013 hit new all time highs of 2,384 and 2,598 square feet respectively.

And while it is known that in absolute number terms the total number of new home sales is still a fraction of what it was before the crisis, the one strata of new home sales which appears to not only not have been impacted but is openly flourishing once more, are the same McMansions which cater to the New Normal uberwealthy (which incidentally are the same as the Old Normal uberwealthy, only wealthier) and which for many symbolize America’s unbridled greed for mega housing no matter the cost.

Of the 569,000 single-family homes completed in 2013:

  • 518,000 had air-conditioning.
  • 59,000 had two or fewer bedrooms and 251,000 had four bedrooms or more.
  • 27,000 had one and one-half bathrooms or less, whereas 188,000 homes had three or more bathrooms.
  • 166,000 had a full or partial basement, while 91,000 had a crawl space, and 312,000 had a slab or other type of foundation.
  • 305,000 had two or more stories.
  • 333,000 had a forced-air furnace and 216,000 had a heat pump as the primary heating system.
  • 347,000 had a heating system powered by gas and 214,000 had a heating system powered by electricity.

The headline reads “McMansions Are Back and Are Bigger Than Ever.” The data would seem to support such an argument as square footage continues to increase and homes have more amenities. Additionally, this is more evidence that the higher ends of the housing market are more robust these days compared to the lower end where smaller homes aren’t moving as quickly.