As this country begins emerging from one of the most difficult economic times in recent years, Americans are looking at ways to be more responsible and resourceful. That attitude has influenced the real estate market too, as what homebuyers want is clearly impacting the market now.
A number of trends are emerging. Homes are smaller now. From a peak of 2,521 square feet in 2007, single-family homes dropped to 2,421 square feet in 2009 and continue to decline two years later. (In 1950 the average home size was 983 square feet!)
For all buyer segments, quality is more important than quantity. That doesn’t mean that buyers want all luxury fixtures, but rather they carefully evaluate what is important and invest cautiously.
Other features that are falling along the wayside are formal dining and living rooms, extra bedrooms, two-story foyers, media rooms and butler’s pantries. The focus on practicality and accessibility encourage open floor plans and multi-use rooms. What stays are walk-in closets and laundry rooms, reflecting a need for practicality and efficiency.
Energy efficiency, both in new and existing homes, is an absolute must. As energy costs rise, homeowners are taking a long-term look at their investments. Maintenance affordability and a small energy imprint are of prime importance.
Homebuyer demographics are changing too. Seniors age 55+ are influential buyers who have helped to drive the smaller square foot home as well. This group wants convenience, affordability and organization that allows them to continue leading an active lifestyle within their financial means.
As the economic recovery proceeds, basic lessons we’ve leaned from the past few years—financial responsibility, care for our environment and discovering what truly makes us happy—will influence the housing market and buying decisions for years to come, and in a good way this time.