Sometimes it’s just time for a change, and that change can take a lot of different forms – breaking off toxic relationships, getting a new vehicle that isn’t a BMW or Mercedes, or downsizing your living space. We as Americans like space, but enough is enough; we all don’t need to live in 4,000 square feet and most of us can’t afford it, but there are alternatives.
You may not believe it while driving around Anna Maria Island and seeing all the mega-homes being built, but in many regions of the country, including Florida, would-be homeowners are realigning their priorities. Because of high prices, high mortgage rates and a lack of supply, buyers are making concessions and the concession that makes the biggest dent in the cost of a home is size.
Builders are finding that smaller homes are attractive to buyers because they not only cost less to purchase but also reduce the cost to run a home. Heating, air conditioning and even the amount of furniture and accessories you need in a home is reduced.
Resales of single-family homes are also benefiting from the size of a property. Buyers are more willing to sacrifice size if it means finding a home that works within their budget. Even townhomes and semi-attached structures are having a comeback, offering less square footage, a two-car garage and frequently a small yard.
Bottom-line buyers – especially first-time buyers – are getting tired of waiting for interest rates to go down, impacting the amount of home they can afford, and have decided they can be just as happy living in 1,500 square feet as living in 2,000 square feet. The average size of a home has decreased year over year in each quarter since 2022 in the country.
Because of several disasters around the country where owners have lost their homes in the last several years, alternative methods of construction are stepping in. California, Hawaii, Florida and the Carolinas have experienced wildfires, flooding and hurricanes resulting in the loss of homes. Homeowners who have lost a home are finding out that their insurance coverage is not covering the cost to rebuild their home so they’re thinking outside the box and so are businesses.
Modular and prefabricated homes have been around for a long time but are starting to gain favor again. No longer do they have a “trailer” look; instead, they can closely have the same look and feel as the previous home. The homes are built in factories then assembled onsite, saving owners hundreds of thousands in construction costs and delivering the finished production in half the time.
A version of modular homes was offered by Sears Roebuck as kit homes between 1908 and 1942. The pre-cut kit was shipped to customers who either assembled the house themselves or hired a builder to do it. There were 75,000 kit homes sold during this period. I know of one on Pine Avenue but I’m sure there were others on the Island and I had a friend who lived in one on Long Island. Sears was way ahead of the curve when they created the kit house, and they were trailblazers when it came to online merchandising.
Finally, if you really want to have your mind blown, check out companies that use modular construction with 3-D printing. Giant 3-D printers squeeze layers of concrete into the framing for a future home and like magic, the frame of the house is done – no hammers and nails required.
If the future is smaller homes, I’m all for it. Who needs all those bathrooms to clean and guestrooms you may or may not use? But then, my priorities changed several years ago when I sold the BMW – best move I ever made.
