How do we know if there is a small house trend?

One summary of 2011 makes a provocative claim: “How Small Spaces Trumped McMansions.” The problem: the review has little to no evidence to back up this claim.

Here are ways we could know that small spaces really trumped McMansions:

1. Look at the average size of the new American home. This has indeed dropped. But this doesn’t necessarily mean Americans are buying small or tiny houses, just smaller new homes. And McMansions have been on the decline for the last few years, not just in 2011.

2. Look at how many small or tiny homes are sold. I haven’t seen any statistics on this nor do I know if anyone is actually compiling this data.

3. Look at whether there is an increase in media coverage of small or tiny homes. I wouldn’t be surprised if this did happen in 2011 but this means a change in media coverage, not necessarily a shift in people’s actions.

4. Look at what builders say they will be building in the near future. Builders seem to think the trend is downward but again, I don’t think most of them are really building small houses, just smaller.

5. Look at whether small or tiny homes are drawing the attention of our best thinkers about homes (architects, designers, others) and government officials. Perhaps this has happened but some data would be nice.

Overall, we need some more data about this possible trend. I think there is evidence that McMansions have been on the decline but we need more data about small houses.

“Muck mansions” and “bungalow bliss” in Ireland

The United States is not the only country with housing issues. Here is a description of some of the issues in Ireland, complete with references to “muck mansions” and “bungalow bliss”:

A major study of the impact of the Celtic Tiger property boom on the Irish landscape has slammed the damage done to the countryside, to rural towns, and to people who have to endure long commutes…

It says that the damage done by the ‘McMansions’ or ‘Muck Mansions’ of the past decade is worse than the effect of the ‘bungalow bliss’ era in the 1970s…

“The mark left on the landscape by the Celtic Tiger society has been profound. A sense of lifestyle entitlement is reflected in the one-off ‘McMansion’ housing in rural areas, with SUVs on cobble-lock driveways, satellite dishes and decking that is seldom used but always seen.”

The McMansions are on a bigger scale, the book says, referring to “a conspicuous two-storey house faced in either red brick or stone, with protruding conservatory and a detached garage. Frequently sited in commanding locations, they dominate the landscape, reflecting their role as status symbol as well as home.”

The description of a McMansion is intriguing. On one hand, there are similar traits compared to American McMansions: ties to SUVs, “entitlement” culture, conspicuous design, sprawl and long commutes, and status symbols. On the other hand, there are some differences: Irish McMansions are said to be in rural areas (though I’m not sure they really have suburbs like the US does so maybe this is similar), the garage is separate, and they are placed in “commanding locations” where everyone else can see them. The general connotation that these are undesirable places and that such homes are either symbols or causes of economic troubles is very similar.

There is something to this alliteration: “muck mansions” and “bungalow bliss.” Any good ideas about similar terms that could apply to the US housing market?

Would wealthy homeowners rather live in or next to a McMansion or modernist house?

A short look at a Great Falls, Virginia modernist house got me thinking: would the typical wealthy homeowner rather live next to a McMansion or a modernist home? Here is how this house is described on Curbed (and there are lots of pictures as well):

A wealthy suburb of Washington, D.C., Great Falls, Va. is better known for it’s sprawling McMansions than its modernist masterpieces, but this glassy new construction in the woods is adding to the town’s architectural street cred. Distinguished by stark white walls and huge expanses of glass, the sleek home was designed by architect David Jameson and won the 2011 Washington DC AIA Award of Excellence. Thanks to the broad swaths of glass, the modern house achieves a connection to nature that would evade one of NoVa’s typical Italianate McMansions. Worthy of special note is the courtyard, which utilizes a frameless glass railing.

So what makes this modernist house more attractive than a McMansion? Several reasons are given here:

1. It has “architectural street cred.” Namely, it was designed by a known architect and won an award.

2. It is better connected to nature than McMansions.

3. It is not an Italianate facsimile of which the articles suggests there are too many. This house is unique.

But I would be interested in knowing how many suburban residents would choose to live in or live near this modernist house versus choosing a McMansion. The modernist style is not common in the suburbs; unless this house is in a unique neighborhood or has a really big lot, it may stick out from surrounding houses. For the average suburbanite, do the looks of this structure really invoke feelings of home? Might this be of architectural interest but not somewhere people could imagine living?

The still somewhat large and pricey “Not So Big” house in the Chicago suburbs

Architect Sarah Susanka has become well-known for her idea of the “Not So Big House.” One of her homes has just been built in the Chicago suburb of Libertyville:

The showcase home, located at the 26-site SchoolStreet Homes development under construction a block east of downtown, is open for weekend tours until May 20. It and the rest of the homes, which are not open to the public, are Susanka’s and developer John McLinden’s take on new urbanism: smaller homes close together, with front porches, a sense of community and walking distance to shops, restaurants and services.

Don’t be fooled, though. When Susanka says not so big, she doesn’t mean small or cheap. The Libertyville home, at 2,450 square feet, won’t be priced until next year when it is put on the market, but other non-Susanka single-family homes on the block start at more than $500,000.

“A lot of builders are building smaller but cheaper,” Susanka said, standing in the furnished home just before it was opened to the public this month. “I believe people are ready for something that is smaller but better.”…

McLinden read Susanka’s books when they were first published and originally invited her to work on one of the houses as a marketing strategy to draw attention to the project. Now they are planning additional collaborations and have been contacted by three other communities about doing similar projects.

In an era where the McMansion is said to be dead and “tiny houses” are growing in popularity, Susanka’s houses stand out for two reasons I’ve noticed before and are also cited in this article. First, these houses are not small. On the spectrum between mansions and tiny houses, Susanka’s houses are very near the national average for the square footage of a new home. As she has said before, the article cites Susanka as saying the homes aren’t small but the space is used well and not wasted. Second, such homes may not be cheap. Perhaps the prices in this story are primarily being driven by being in Libertyville (with a median household income just over $100,000) but then again, Not So Big houses are likely to be built in communities like these.

The emphasis in Susanka’s homes are on two things beyond size and price: quality and fit with the homeowners. Neither of these things are cheap as the homes are not meant to be mass-produced (then they might fall perilously close to tract home or McMansion territory) and the features are customized to the activities and tastes of those who live there. Apparently, there is a market for this.

This could lead to an interesting question: are these primarily homes for educated, wealthy people who appreciate the design features and can afford the prices? Perhaps this shouldn’t be surprising as architects do need to make money and wealthier clients (and higher-end builders) could certainly help. Could Susanka help market her homes even further if she could create and market a smaller version that could be affordable (or in terms more palatable for many suburban communities, “workforce”) housing? Would she want to produce a lot of these homes or would these reduce the appeal of status of these architect-designed homes?

An argument for historic districts: repel McMansions!

A common argument for historic districts is that they limit the destruction of older homes and the construction of McMansions. Here is an example of this argument in Fort Lauderdale:

However, if communities wait around for that history to age, new development might wipe it out before it has a chance to be saved.

That fear has residents of Fort Lauderdale’s Colee Hammock neighborhood thinking about seeking historic district designation for their community.

“We’re constantly inundated with development issues, people wanting to come in and build too much, too high, too big,” said Jackie Scott, president of Colee Hammock’s neighborhood association. “It gets to a point where you’re sick and tired of always having to come out and fight for your neighborhood. It’s not an enjoyable way to live.”…

“We have some beautiful homes that have been built and are new construction. They fit perfectly with the neighborhood,” Scott said. [A historic district] prevents people that want to come into an area like this to start ripping things down and creating McMansions.”

While McMansions are often tied to sprawl and new subdivisions, teardowns are also a common scene for debates over the merits of McMansions. In this particular example, a McMansion is contrasted with new homes that “fit perfectly with the neighborhood.” Many American communities have created some guidelines so that teardowns can’t be anything a homeowner might desire but there is a spectrum between more permissive and less permissive communities. The advantage of declaring a historic district is that the community has more control over what can be demolished and built within the district. At the same time, some consider historic districts to be quite restrictive.

I would be interested to hear what resources those pushing for the historic district have utilized from outside groups. For example, the National Trust for Historic Preservation even has a page titled “Teardowns and McMansions.” Here is the lead paragraph:

Across the nation a teardown epidemic is wiping out historic neighborhoods one house at a time. As older homes are demolished and replaced with dramatically larger, out-of-scale new structures, the historic character of the existing neighborhood is changed forever. Neighborhood livability is diminished as trees are removed, backyards are eliminated, and sunlight is blocked by towering new structures built up to the property lines. Community economic and social diversity is reduced as new mansions replace affordable homes. House by house, neighborhoods are losing a part of their historic fabric and much of their character.

With such resources available, I wonder if local groups are now more effective in adopting historic districts.

“Big-Box Houses” the successors to McMansions?

Builder has an article about a new kind of home: “big-box houses.”

Even as average new-home sizes have fallen slightly across the country, builders in some markets are finding a profitable and underserved niche of buyers who need or want a house as big as a mansion with the price tag of a cottage. While some buyers are in true need of the space, others, awed by the per-square-foot value of so much elbow room that cheap land and efficient box-like floor plans make possible, can’t resist the buy…

Lennar, for example, recently rolled out its 4,054-square-foot Himalayan model in the Tampa, Fla., market for $270,990. D.R. Horton has The Surrey, a 4,600-square-foot home in Lakeland, Fla., starting at $223,990. M/I Homes is selling the 5,249-square-foot Gran Vista in Orlando starting at $336,460. And KB Home has a 5,211-square-foot model it is selling in Austin, Texas, for $422,950…

Another housing executive says the big-box home trend was born as a way to compete with resales because it is rare to find large homes among resales and foreclosures, making their plus-size a product differentiator. Also, the larger homes can often pass muster with appraisers more easily, because the bigger the house, the smaller the square-foot price, and the higher-priced portions of the home, kitchens and bathrooms, are amortized over a larger number of square feet. The lower price per square foot helps the homes compete with the lower per-square-foot cost of distressed home sales.

Still, the formula of building such homes at a profit is tricky. It requires that land in the right neighborhoods be bought at fire-sale prices and that the home itself be value-engineered for cost efficiencies as well. The box on top of a box model is a less expensive way to build than a single-level house or one with more complicated shapes and roof pitches.

Quick summary: there is still a part of the housing market for big, cheap homes, particularly among those with larger families.

My question would be how these homes differ from McMansions. It seems to be that the big-box homes are budget big homes with no frills. McMansions came to be known for their luxuriousness, whether this was reflected in the large windows in the front, the stone mailbox or wrought iron fence, the stainless steel appliances and granite countertops, or the voluminous great room. These big-box homes are big because their owners want to use all the space, not because they want to impress people. I wonder what this means for the quality of the construction: McMansions were often regarded as being shoddy and the builders quoted in this story admit that these homes have thin profit margins.

Also: the name is intriguing. McMansion came to be a generally negative term. “Big box” is usually used derisively to refer to retailers like Walmart or Home Depot who have huge stores and low prices. Additionally, there are a lot of connotations about big parking lots, environmental concerns, and sprawl. If I were a builder, I wouldn’t want my homes to be known by this term. If this term sticks, will these homes become reviled in the same way as McMansions?

The BBC on Levittown 60 years later

The BBC goes back to Levittown, Pennsylvania and finds that it looks like much of America:

Now, as then, the community is home to a diverse cross-section of middle-class voters. But whereas in 1960 unemployment rates were less than 6% and business in Levittown could not expand fast enough to meet growing demand, the outlook for current residents is grimmer…

Now, the outer roads around Levittown are lined with strip malls, and in them a dozen different grocery and convenience stores, a Super WalMart, McDonalds, and hotel chains.

The houses, once indistinguishable from one another, have developed individual flair: on one street, one house has painted pink brick face, while another has built a covered front porch…

It’s not a greying district by any means – thanks in part to the housing collapse, Levittown is once again an abundant source of inexpensive housing, and as a result more new families are moving here to get their start.

The Levittowns are often held up as exemplars of the massive suburban boom in the United States in the decades following World War Two. The mass production of the homes was unique then though the techniques would look fairly normal today. I like that this article emphasizes the changing nature of this suburb that was once derided for its similar looking homes and relatively homogenous population. We would do well to have such a view of all suburbs: they change over time even if some of the physical pieces, such as single-family homes or strip malls, are the same.

The two best books I can recommend on Levittown(s):

1. The Levittowners by Herbert Gans. Based on ethnographic work conducted during the early years of the development, Gans combats some of the common suburban stereotypes.

2. Expanding the American Dream: Building and Rebuilding Levittown by Barbara Kelly. Kelly gives more details about how Levittown residents have customized their homes and what this means for the community.

College students rent cheap but luxurious McMansions

Here is another use for McMansions (and much better than one California option from last week): rent them to college students.

While students at other colleges cram into shoebox-size dorm rooms, Ms. Alarab, a management major, and Ms. Foster, who is studying applied math, come home from midterms to chill out under the stars in a curvaceous swimming pool and an adjoining Jacuzzi behind the rapidly depreciating McMansion that they have rented for a song.

Here in Merced, a city in the heart of the San Joaquin Valley and one of the country’s hardest hit by home foreclosures, the downturn in the real estate market has presented an unusual housing opportunity for thousands of college students. Facing a shortage of dorm space, they are moving into hundreds of luxurious homes in overbuilt planned communities.

Forget the off-to-college checklist of yesteryear (bedside lamp, laundry bag, under-the-bed storage trays). This is “Animal House” 2011.

Double-height Great Room? Check.

Five bedrooms? Check.

Chandeliers? Check.

Then there are the three-car garages, wall-to-wall carpeting, whirlpool baths, granite kitchen countertops, walk-in closets and inviting gas fireplaces.

This article provides an overview of an interesting situation but asking a few more questions would reveal a lot more:

1. If students live in such nice homes during college, what does this do to their expectations when they return home or after they graduate? If you are used to living in a nice McMansion, how do you move up after that?

2. In what condition do these students leave these McMansions?

3. The story paints these students as helping desperate homeowners. At the same time, homeowners in nice suburban subdivisions may not always look favorably at college students who can tend to be loud and unruly. Are all the town and gown relationships here all good as the story suggests?

4. Might some of these students stick around in these neighborhoods after college? If so, how would this change the neighborhoods?

To sum up, is this a long-term solution or a temporary solution to issues in one of the foreclosure capitals of the United States?

How much it costs to live in the cheaper suburbs or expensive New York City

Opponents of sprawl argue that while many prospective buyers move further away from work in order to buy bigger yet cheaper homes, there is a cost. One website argues that the each mile closer to work is $15,900 that could be spent on a house:

We all know that driving to and from work every day is costly, but exactly howmuch of a toll does each mile of commuting take on your finances? This True Cost of Commuting graphic breaks it down.

Taking stats and calculations previously mentioned by Mr. Money Mustache, the infographic illustrates just how expensive commuting is. Each mile you live from work costs $795 in commuting expenses per year (assuming a driving cost of 34 cents per mile and factoring time lost with a salary of $25 per hour). $795 a year for just one mile! You could buy a house worth $15,900 more with that, as Mr. Money Mustache pointed out in his article, since $795 would cover the interest on a 5% mortgage rate.

If you don’t want to calculate in the time-is-money factor, each mile (one way) of commuting will cost you $170 a year. It’s a compelling reason to move as close to work if you can (or bike to work or telecommute).

See the large infographic here. I don’t know about Mr. Money Mustache’s calculations but this is a sizable number.

At the same time, there were reports this week that the Occupy Wall Street protestors tend to live in pricier homes. As Megan McArdle notes, this is a consumption choice where people decide to spend more of their income on a home in a great city:

My initial reaction was the same as many people I’ve seen in comments sections: the protest is in New York, which is expensive.  This is hardly surprising.

But on second thought, I don’t think that’s quite right.  At least some of the houses identified by the Daily Caller are in places like Texas and Wisconsin.  But more importantly, I’m not sure we should “discount” these home values for location.  The fact is that living in an expensive city is a consumption choice.
You hear this argument all the time from people in New York.  “Rich?  Hah!  We’ve got four people in 1600 square feet, and our school bills are going to put us into bankruptcy.”  Many New Yorkers believe that they should be given some sort of income tax abatement because of the expense of living there (with the lost revenue being made up from “really rich” people, natch).  Slightly less affluent New Yorkers frequently believe that landlords should be forced to offer them “reasonably sized” apartments at a modest fraction of their income, because after all, otherwise they couldn’t afford to live in New York…
Living in a blue state is a choice.  If coming to New York meant that you had to put four people in a three bedroom apartment that’s uncomfortably far from a subway line, instead of buying a nice little condo in Omaha, this does not mean that you are not “really” better off than your counterpart in Omaha; it means that you have chosen to consume your extra wealth in the form of “living in New York” rather than in the form of spacious real estate, cheap groceries, and an easy commute.

So what people in the Midwestern suburbs might spend on a daily 20 mile each way commute in a SUV translates into a more expensive apartment in New York City.

Both stories cited above suggest consumption is a choice. But is it truly an unfettered choice? What would lead some people to aim for the bigger yet cheaper house in the suburbs and others to spend more money on a smaller place in a cosmopolitan paradise? Perhaps this information would help both sides engage in conversation rather than talk past each other and try to force the other side to follow their logic…

Of course, we could look at the broader trend of American political and cultural discourse on this subject. On the whole, government policies have promoted suburban living while a few big cities, such as New York City, have successful dense, mass-transit oriented living. Cultural discourse, even if it is shifting toward the younger generation’s increased interest in denser living, still privileges the suburban American Dream.

Even Gawker says “The McMansion is dead”

Since Gawker is reporting it, does this really mean that the McMansion is dead?

This heartless recession has stolen from America our most treasured national totems. Huge SUVs? Too gas-guzzling. Sprawling suburbs far removed from the “diverse” cities? Reduced to slums. And now, the recession is coming for our very homes.

By “our,” I mean “people with too much money and too little taste.” The WSJ says that the humble McMansion—the rightful reward of all hardworking Americans willing to take on a $450,000 mortgage and a 75-minute commute in order to have a huge, useless foyer lined with the thinnest sheet of marble veneer—is no longer the popular thing to build, for builders who want to build homes that will actually sell. Shrines to conspicuous consumption are out! By necessity.

Goodbye, grand foyers! Adios, spiral staircases! Hello, newly poor American rationalizing their now meager living spaces like a bunch of formerly wealthy people wiped out by financial calamity—which they are!

Totem could be taken as referring to a religious object of devotion, a la Durkheim. If so, do Americans worship SUVs, McMansions, and suburbs? That would be interesting to discuss.

Granted, Gawker is quoting an interesting Wall Street Journal story that suggests the wealthy/big homes of the future that will include “drop zones,” space for an elevator, a “lifestyle center” (not to be confused with gussied-up outdoor malls masquerading as community centers known by the same name), steam showers (goodbye soaker tubs!), and outdoor living space.

A reminder: this is the same website that has this description leading off its stories about Jersey Shore (this is from earlier this year).

When watching Jersey Shore, the most important sociological experiment of our time, we’re looking for new and exciting behavior.

Me thinks there may be some hyperbole and/or mocking there. At least that is what I hope.