Still building some big houses in a down housing market

Builders are still building some big houses even in a down housing market:

It may be politically incorrect, but some builders are putting up larger houses, not smaller ones, according to Builder, a trade journal.

Spurred by inexpensive land costs, builders in many markets are able to erect McMansions for only a small percentage of what they cost before the housing market implosion…

These places are largely big boxes, so they aren’t likely to win any design awards, says the magazine’s editorial director, Boyce Thompson. But they’re decked out with enough sizzle that they are hard to resist, whether or not you need the space.

“Even as average new-home sizes have fallen slightly across the country,” the magazine reports, “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.”

Four quick thoughts based on this:

1. The comment that it is “politically incorrect” to have a big box house is fascinating. This has happened in a relatively short amount of time, roughly 5-6 years.

2. The comment that these houses “are hard to resist” is also interesting. Americans do like their housing deals. Even if people shouldn’t buy these homes, who can pass up a great deal?

3. There is still some money to be made in new houses in the right circumstances.

4. What is the quality of these homes? McMansions have that term partly because people argue they are mass-produced and made of cheaper materials meant to impress rather than to last.

Six predictions for American suburbs in 2012

Since this is the time of year for predictions, here are my six broad predictions for American suburbs in 2012:

1. The suburbs will continue to be the space of choice for Americans even as critics argue they are bland, environmentally untenable, and ultimately unsustainable.

2. At the same time, because of the economic crisis, continuing trends in design, and different tastes among Millennials and retiring baby boomers, suburbs will be pursuing denser projects with more certain long-term outcomes.

3. Many suburbs and other local taxing bodies (school districts, etc.) will struggle to find revenue. The budget deficits at the federal and state levels will continue to trickle down. Many communities will struggle to fund basic services.

4. Minorities, immigrants, and lower-class residents will continue to move to the suburbs and more strongly challenge the image of suburbs as lily-white havens. Some suburbs will struggle to adapt. Wealthier suburbs will continue to look for ways to limit these changes.

5. The issues of funding and revenues will trump concerns like providing social services for new populations, being environmentally-friendly, and providing affordable housing. Some will argue these communities would likely stonewall these concerns regardless.

6. Regarding single-family homes: McMansions will continue to be disparaged, the size of the average new home will drop again, the problems with foreclosures will continue, the President and Congress will continue to express how the single-family home is the foundation of the American Dream, and affordable housing will still be unpopular.

(Note: I’ve written about these trends throughout 2011 and I plan to keep writing about them in 2012. While these predictions are somewhat vague, it is difficult to describe trends across all suburbs as they are a varied lot.)

Learning about the Republican presidential contenders from their (McMansion) homes

Perhaps showing that drawn out process for nominating a Republican candidate has gone on long enough, the New York Times takes a new angle in looking at the possible candidates: looking at their homes. And the topic of McMansions comes up:

Where better to look than their homes, to get a sense of their style, and what it might tell us about what they value and how they live? …

The New York Times enlisted interior designers and a design psychologist to scrutinize photos and share their thoughts, political leanings aside, on what the homes reveal about the candidates.

Some points are obvious to an untrained eye. There are a lot of big new houses, for example. “I hate to call them McMansions — it gives McDonald’s a bad name,” said Thad Hayes, a New York designer whose many projects have included restoring the Palm Beach mansion of Estée Lauder. “But with so many of them, you can’t tell where they are. They’re totally anonymous.”…

The candidates all seem to be striving for an American colonial look — there is not a fixer-upper or modernist glass oasis in the mix. And many aspire to the formality of the White House — there are lots of wood-paneled studies and use of a pale gold that Benjamin Moore would surely name Oval Room Yellow.

And read further for more specific critiques of each candidate’s home.

Several quick thoughts:

1. I wonder how much the quip about McMansions is prompted by the houses themselves or political leanings of the commentators. Many of the comments about these houses are similar to those generally made about McMansions: the homes are big, boxy, poorly proportioned, full of flashy luxuries, look traditional but aren’t really, and inhabited by social strivers. Perhaps more liberal candidates or officeholders do actually have more “authentic” homes but I wonder…McDonald’s is better than these homes?

2. Despite my thoughts in thought #1, scholars have noted how important the shift was from seeing the home as a necessity to seeing the home as an expression of oneself. While there are varying opinions about how this should be carried out, homes are like many consumer objects: we want them to help express our individuality.

3. While it is noted that the candidates generally have traditional-looking homes, is this really any different than most Americans? How many people really live in or desire more unique designs? (It might also be interesting to think about what is a “traditional” look – does stucco count? Mediterranean?)

4. Perhaps this is too obvious to note: this doesn’t contribute much to our knowledge about the candidates except to remind us that most (all?) big-name politicians have big homes.

(Side note: others, like The Atlantic, have picked up on the McMansion aspect of this story.)

What you lose by having a 3-4,000 square foot home compared to a 5-6,000 square foot home

If you are going to move into or build a 3-4,000 square foot home instead of a 5-6,000 square foot home, what do you lose? A game room, among other things:

Customers increasingly are opting for alternate uses for the room that used to house the pool table and bar. Real estate agents and builders cite a number of reasons, from people’s tastes changing, a sign of the economic times or a baby boomer generation growing older, as reasons.

Going without a game room is not necessarily a sign that people are entertaining less, but more an indicator that custom homebuyers are making more practical decisions about what they want their living space to contain, says A. Faye Scoller, of the Scholler Group Prudential PenFed Realty…

“Additionally, we are seeing a lot less of the ‘keeping up with the Joneses’ in terms of the total square footage,” Booth notes. “Where we used to build 5,000- to 6,000-square-foot McMansions, now customers are reducing their space requirements, and now custom homes, with the same high-end amenities and extras, are in the 3,000- to 4,000-square-foot range.”

A smaller footprint comes from eliminating the game room and dining room and making one large and airy great room that can serve multiple uses, Booth said.

Both home sizes are large but you would have to make changes if you lose several thousand square feet.

The most interesting part of this to me is that although these houses may be smaller, this one builder suggests the smaller homes still have the “same high-end amenities and extras.” People may not want space but they still want the luxury items associated with a big home. At the same time, does this mean that a pool table and a bar are no longer desirable status symbols?

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?