Consumers scaling back demand for larger home

Is it really the end of the McMansion era? Some experts say yes, others not so much.

“There’s no question we’re seeing demand for smaller, more energy-efficient homes,” said S&A Homes Vice President of Sales Chris Schoonmaker. The ENERGY STAR builder started focusing on home plans in the 1,600-to-2,200 square-foot range about two years ago. Previously S&A Homes averaged in the 2,300- to 3,000-square-foot range.

Rob Bowman, president of Lancaster-based Charter Homes, said his company continues to see a market for larger homes but buyers may buy less square footage with extra amenities. “We’re continuing to see a market for larger homes,” Bowman said. “But another market opening up is people wanting a smaller square footage home with thoughtful finishes. That market wasn’t there two or three years ago.” Buyers are looking for high-level details, Bowman said, in features like kitchen cabinets and appliances, trim, entertainment centers and flooring finishes. 

“Our focus is on good design –- it’s our common thread,” he added. “We want to provide homes that everyone can afford.”  Charter offers houses ranging from 1,300 to 5,000 square feet. “Consumers who may have previously purchased a 4,000- square-foot home might now buy 3,000 square feet,” Bowman said. 

Bette McTamney, a REALTOR® with ERA Platinum Realty in Worcester, works with new builders and is seeing trends change. “We have a tremendous inventory of homes with more than 5,000 square feet,” she said. “We’re seeing buyers who qualify for more but they’re being conservative in their purchase. They want a nice house in a nice area but not as much square footage. Consumers are scaling back; they’re looking at 2,800 square feet or less but they still want their amenities. They’re also successful in negotiating for the upgrades such as hardwood floors or upgraded kitchens.”

Related posts:

1. Truth in square footage
2. Outdoor staging entices buyers into the home
3. Recarpeting hardwood floors is a home repair ‘don’t’

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Tags: mcmansion, sales

This entry was posted on Thursday, October 29th, 2009 at 7:00 am and is filed under Industry News. You can follow any responses to this entry through the RSS 2.0 feed.