What's Hot: The Only True Waterfront Residences in DC? | Indoor/Outdoor Restaurant From Seven Reasons Chef Coming to HQ2
Bye Big Homes: Report Predicts the End of McMansions
The Demand Institute, an organization that analyzes changing trends in consumer demand, has released a report that harkens the end of large, sprawling single-family homes miles from the nearest walkable town center.
Home size trends. Courtesy of the Demand Institute.
A few conclusions from the report:
Consumers will reduce their expectations and houses will be smaller, neighborhoods will be increasingly segregated economically, resulting in polarization, and demand will be high in areas well served with amenities that are within walking distance and that have a sense of community. Sprawling, featureless suburbs will be less attractive.
The average home size has been steadily shrinking for the past few years and the Demand Institute expects that trend to continue. In addition to changing values, downsizing empty-nesters and urbanite Generation Y-ers, the report links the change to the growing middle class. While a small percentage of Americans are getting wealthier, most find themselves with less money and thus more interested in smaller homes.
The report concluded that rental demand from young people and immigrants will lead the national housing recovery. Developers and investors will buy up properties with the intention of renting them out to these groups who have limited savings, and developers of new rental units will be an important source of home building growth. We’re seeing that in DC (the high level of construction activity is being led by multi-family buildings), but it can also be seen in the rest of the country; the report mentions that developers started 178,200 new multifamily units in the U.S. in 2011—a 54 percent increase over 2010.
Similar Posts:
- Americans Downsize: Homes Built in 2009 Were Smaller Than Past Years
- Generation Y Wants the Dream Neighborhood, Not the Dream Home
- Will 7 Billion Humans Mean Smaller Homes?
See other articles related to: smaller homes, mcmansions, demand institute
This article originally published at http://dc.urbanturf.com/articles/blog/housing_report_predicts_the_end_of_mcmansions/5545
UrbanTurf Listings showcases the DC metro area's best properties available for sale.
Most Popular... This Week • Last 30 Days • Ever
The Brooks—a collection of 89 elegantly appointed condominiums at The Parks at Walt... read »
Landmark Theatres is in the final stages of negotiations that would have it operating... read »
The planned 8-unit development would be located on K Street right along the Potomac R... read »
The next phase on the Center Block would deliver 166 apartments and 221 hotel rooms.... read »
DC's crane count still ranks as one of the highest among U.S. cities despite a declin... read »
- The Only Available Condominiums at The Parks Are Now Over 65 Percent Sold
- The Return of the Uptown Theater is Imminent
- A New Residential Project in Georgetown Would Sit Right on the River's Edge
- The Next Phase of Capitol Crossing Looks to Get Key Approval
- 35 High: DC Has Third Highest Crane Total For a U.S. City
DC Real Estate Guides
Short guides to navigating the DC-area real estate market
We've collected all our helpful guides for buying, selling and renting in and around Washington, DC in one place. Visit guides.urbanturf.com or start browsing below!
First-Timer Primers
Intro guides for first-time home buyers
Unique Spaces
Awesome and unusual real estate from across the DC Metro
