New Bel Air homes of over 17,500 square feet cannot be called McMansions

In recent years, a number of extra large houses have been constructed in Bel Air. But, these are not just regular McMansions:

Rosen rallied his neighbors in a mini-revolt against City Hall. The result was 2017’s Bel Air mansion ordinance, a more rigid version of the ordinance imposed on the rest of Los Angeles. While many of the hauling trucks are now gone, the wealthy enclave is still grappling with the legacy of its McMansion years. Between 2014 and early 2017, the city issued 28 permits for mansions in Bel Air of 17,500 square feet or larger, most of which are still under construction, according to an analysis by The Real Deal. The projects are exacerbating a spec-home building spree that rattled longtime Bel Air residents and is dramatically altering the landscape of the area, not to mention its real-estate market.

As of Wednesday there were 12 homes in Bel Air of 15,000 square feet or larger currently sitting empty and unsold in, according to MLS data cited by Steve Lewis, President of CORE Real Estate Group in Beverly Hills.

These are not regular McMansions in suburban neighborhoods: these are megahomes going for megaprices and constructed by and for the ultra-wealthy.

Meanwhile, on Chalon Road, Thomas Barrack Jr., the Colony Capital CEO and pal of President Donald Trump, is nearly done building out an eight-acre compound with a 77,000-square-foot mansion being designed by Peter Marino. Barrack is building it on behalf of the royal family of Qatar. Other competing giant offerings, including the Mountain, a 157-acre plot in Beverly Hills Post Office now listed for $650 million, and a 120-acre site owned by an entity linked to the late Paul Allen asking $150 million, don’t have plans or permits in place for mega-mansions, Blankenship said.

Massive spec mansions on the market right now include Bruce Makowsky’s 38,000-square-foot estate at 924 Bel Air Road, asking a much-reduced $150 million, and the Mohamed Hadid-developed mansion at 901 Strada Vecchia, which is the subject of an FBI probe and a lawsuit from neighbors who want to see it torn down.

Granted, it sounds like some of the activity in Bel Air may be consistent with several features of McMansions: big homes, teardowns, and status symbols for the wealthy. For those who live in Bel Air, it could be disconcerting to see the scale of new construction. But, this article focuses primarily on the really big homes, the ones that are not just someone upgrading from a 2,000 square foot ranch to a 5,000 square foot home with a mishmash of architectural features. The last example in the piece illustrates this difference between a McMansion and mansion: a billionaire/actress couple want to tear down a home under 8,000 and more than double the square footage in a new home. Again, that is a scale far beyond the average upper middle-class American (and that does not even include the price it takes to buy into this particular neighborhood). Perhaps the real goal of using the term McMansion here is to denigrate the new homes and not grant them the status of mansion.

I would argue McMansions are roughly 3,000 square feet to 10,000 square feet. The bottom end may seem rather small but this size home could be quite large if constructed in a home of small homes. The upper end is a rough cutoff when a home goes from regular big home to extra large/wealthy big home. Size is a critical factor in defining a McMansion and these Bel Air homes are way beyond McMansion limits.

New American homes continue to get smaller

Data from 2018 shows new homes in the United States are getting smaller:

NAHB data shows the average size of new houses fell for the third straight year in 2018. Median square footage of single-family houses decreased to 2,320 last year after peaking at more than 2,500 square feet in 2015.

Although still above the sub-2,200-square-foot medians hit during the Great Recession, the numbers suggest that entry-level buyers and those looking for starter homes might finally have more options in the coming years. It’s also good news for those who have had problems getting a mortgage because of credit issues.

Robert Dietz, NAHB’s chief economist, said the data probably indicates that home builders are turning toward middle-class housing after spending much of the current economic growth period focused on the high-end development.

In the aftermath of the housing bubble and the economic crisis, builders focused on higher-end buyers. With money to be made there and the limited ability of those with fewer resources to purchase new homes, bigger homes were the primary focus.

So what has changed? Lower class and middle class buyers may now again have the resources to purchase new homes. With a steady economic recovery (stock market up, unemployment down, wages relatively flat), homeownership may be attainable again for more people. The homeownership rate has been down during the last decade though up a little recently.

Just one reminder: the decreased median may not mean that fewer large homes are under construction – Americans do seem to want big homes – but rather that more smaller new homes were built.

Looking for the HGTV show that prioritizes fit and well-being, not budget and square footage

Reflecting on yesterday’s post on the dissonance of watching Marie Kondo in a McMansion, I wondered: where are the television shows that prioritize finding a home based on the social and psychological needs of the owners and their long-term health rather than emphasizing running up against the budget and maximizing the size of the home?

The easy answer is that these are not the homes or stories that Americans want to see. People want to get as much as they can within their budget. The overall price of the home and the size makes for interesting viewing across different locales.

Yet, I imagine there is some sort of viewership market for those who would rather emphasize how a home would fit their lifestyle. This occasionally comes through on HGTV but tends to be subsumed under concerns about budget and the size. Where are the people buying smaller homes and or cheaper homes because they appreciate the aesthetics of a particular home or because a smaller home is easier to clean and maintain or that cheaper and smaller home is near friends and family which are more important than their private home? Or, perhaps there could be a show about how relatively normal people purchase homes and then tweak them to fit their particular needs or interests.

If more homeowners are truly interested in long-term well-being, evidenced by interest in decluttering or options like the Not So Big House, it may be a while before they see this reflected on TV. Too many current shows are limited by budget and square feet to truly consider the well-being of the owners.

A vote against urban McMansions in 2018

One design and architecture writer takes aim at urban McMansions as a tired trend from 2018:

Allison Arieff (columnist, New York Times):

Urban McMansions. I gotta ask these folks—was it always your dream to live in the Apple store? And if you want to live in 10,000 square feet, maybe you should move to the suburbs?”

Arieff draws attention to three traits of McMansions which she sees as negative:

  1. Their large size. She pegs the size at 10,000 square feet though I would argue that once you are at 10,000 square feet and above, this is more of a mansion than a McMansion.
  2. Their poor or low quality architecture. The comparison here is to an Apple store, presumably a structure of a lot of glass and silver metal. This may be appropriate if you are selling trendy phones and tablets but perhaps not so much in a new residence.
  3. A connection to the suburbs. Whereas McMansions are expected to arise from empty fields, plopping a large McMansion in an urban neighborhood, particularly an older one, could be viewed more negatively. How exactly does a big and poorly-designed single-family home contribute to a vibrant and cosmopolitan city scene?

Together, these homes are an inappropriate size, do not look good, and are meant for a different kind of streetscape and lifestyle. For more, refer to my four traits that can define a McMansion.

Natural disasters provide opportunity to build even bigger homes

In the spirit of “never let a good crisis go to waste,” homeowners in five areas that experienced natural disasters in recent years ended up with larger homes:

To estimate the mean change in real estate, Lazarus and his team gathered satellite data, from sources like Google Earth, of five hurricane-prone places: Mantoloking, New Jersey; Hatteras and Frisco, North Carolina; Santa Rosa Island, Florida; Dauphin Island, Alabama; and Bolivar, Texas. They looked at images taken before the most recent hurricane and compared them to satellite data gathered post-recovery.

Even with conservative study inclusion criteria (any structure that experienced a 15 percent or smaller change in size was excluded, Lazarus says, because with “satellite imagery, there’s tilt, the sun can glare in places, and you have to be careful with what you’re digitizing”), the results were striking. The study found that rebuilds were between 19 and 50 percent larger than the original structure. New construction increased in mean size between 14 percent and 55 percent compared to the buildings that stood before a given storm…

“This is where the moral hazard comes in: the risk of some choice you make is not entirely yours, it’s distributed to other people,” he says. In the United States, for example, taxpayers fund the National Flood Insurance Program, a financially-beleaguered federal entity that insures many of these enormous beach constructions. As a result, every taxpayer is inadvertently “supporting development in risky places,” he says.

There’s also concern that such disasters may be displacing poor and middle-class homeowners, allowing developers to swoop in after a catastrophe and build a wealthy renter or buyer’s dream McMansion from the ashes. In a blog post accompanying the study, Lazarus cited several such events, documented by newspapers around the country. “The one that really continues to hold my attention is the New York Times piece on the Jersey shore,” he says, citing a story about developers who were able to buy bigger lots at depressed prices, permanently changing the community.

I can see why this seems odd. An argument can be made that homes constructed in disaster-prone areas should be more modest. Perhaps homes should not be rebuilt in these locations at all. Building even bigger homes may appear to be throwing caution to the wind.

At the same time, the trend in the United States for a long time has been toward bigger and bigger homes. Regardless of the reason a home is destroyed, would a majority of Americans respond by building a larger home? And this might be especially true in this areas near the beach where homes and land can have a high value (even if there is a threat of disasters).

If a bigger home equals a better home for many Americans, it will be difficult to argue otherwise, regardless of the situation.

Building and buying larger homes leads to “McMansion envy”?

Here is the full Bankrate.com headline of the story I discussed yesterday about Americans buying larger homes:

McMansion envy spreads as Americans demand more bedrooms, baths

What is “McMansion envy”? The common sense interpretation seems clear: people see and desire McMansions. Yet, this gets complicated fairly quickly for a number of reasons.

  1. The data then presented in the story does indeed tell a tale of Americans buying larger homes. But, not all large homes are McMansions.
  2. There is no other mention of the term McMansion. While the term seems to be a stand-in for large homes in general, there are also references in the story to homes with more and flashier features (including more bedrooms and bathrooms as well as higher-end finishes, though this last part is difficult to defend with Census data).
  3. McMansion is a pejorative term and few real estate listings or homeowners proudly use the term to describe their homes. Instead, the term typically refers to tacky or garish large homes (see McMansion Hell for an example).
  4. Indeed, the exact definition of a McMansion is more complicated than just a big home or a poorly-designed home. I argue McMansions have four possible traits.

I do not expect this concept of “McMansion envy” to spread except for critics of larger homes and McMansions who want to describe some sort of sickness from which Americans suffer.

 

“Americans demand more bedrooms, baths”

I argued a few days ago that the American system is set up to encourage people to purchase bigger homes. Look, the system is working! Americans continue to build and buy bigger homes.

The latest numbers from the U.S. Census Bureau show newly-constructed homes in 2017 are 4 percent larger on average than a decade ago. And they come with a larger price tag — the average price of a new home jumped 23 percent from $313,600 in 2007 to $384,900 last year. Meanwhile, the average family size in the U.S. continues to shrink, from 3.33 persons in 1960, to 2.54 in 2017…

Below are some takeaways from the Survey of Construction data released in June. Based on the most common features, the most popular home built in 2017 was a two-story, two-garage home with more than four bedrooms and three bathrooms.

Several graphs highlight the proliferation of bedrooms and bathrooms in recent years:

Chart: Number of bedrooms in new single-family houses completed

Chart: Number of bathrooms in new single-family houses completed

Even with plenty of critics, American builders and buyers still seem to want larger homes. Perhaps the market is primarily open these days to wealthier buyers and builders may not be interested in constructing starter homes but this is not an isolated blip in the data: for decades, Americans have sought larger homes.