Scaling Back: Why Homebuyers Are Stepping Away from McMansions
A recent study by Trulia shows that homebuyers are generally no longer in the market for “McMansions.” McMansions are defined as any home built between 2001 and 2007 with the square footage between 3,000 and 5,000. The study found that the premium has fallen for McMansions from 138% in 2012 to 117% this year – however, varying substantially by market.
The Indianapolis Star also researched this national trend and gained perspective from local REALTORS® who confirmed that buyers are choosing to purchase smaller homes and their disinterest in mass-produced homes. Functionality and quality of the living space are the main reasons for this shift. Buyers are more willing to put money into the quality of the space rather than the amount of space. Also, buyers are cautious to the cost of buying a larger home – making the home more expensive to heat, cool and maintain.
What are your thoughts on the shift from McMansions to smaller, more functional homes?