You hear so much about many Americans not being able to buy a house these days...

[raccoon]

And that’s true, but one thing that’s not often mentioned is that houses are so much bigger nowadays.

Average/Median House Size. In 2015, the average size of new houses built in the US increased to an all-time high of 2,687 square feet. Over the last 42 years, the average new US house has increased in size by more than 1,000 square feet, from an average size of 1,660 square feet in 1973 (earliest year available from the Census Bureau) to 2,687 square feet last year. Likewise, the median-size house has increased in size by almost 1,000 square feet, from 1,525 square feet in 1973 to 2,467 last year. In percentage terms, both the average and median size of new US houses have increased by 62% since 1973.

https://www.aei.org/carpe-diem/new-us-homes-today-are-1000-square-feet-larger-than-in-1973-and-living-space-per-person-has-nearly-doubled/

[Diamond_Dog]

1. Does everyone have to have

New construction for their first home? Whatever happened to buying a “starter home” and working your way up?

[CrispyQ]

7. Right?

I listen to young couples touring homes on HGTV & all of them want a new house or an upgraded house that looks perfect. The linoleum in our first house was putrid & we lived with it for four years. Of course we had some other things we replaced first, like the fogged up bedroom windows.

[Diamond_Dog]

10. IKR?

We had 3 kids and lived in a small 1950s ranch house that had a tiny kitchen with ugly 1960s wallpaper and 2 ft. of counter space on each side of the sink and that was it. We couldn’t afford to remodel until my youngest was in 1st grade.

[FSogol]

23. Don't mistake HGTV are being realistic or as an example of real housebuyers.

When our linoleum was putrid in our first townhouse, we ripped in out and used the subfloor for a year.
It took about 7 years renovate the kitchen, bathrooms, and roof which we did ourselves. The fogged up windows was the only thing we hired a pro to replace.

[Mariana]

17. Whatever happened to buying a "starter home" and working your way up?

The population is increasing. Very few new small homes are being built. There is also increased demand for the existing small homes by retiring Boomers who are downsizing and simplifying. Therefore, there aren't enough "starter homes" to go around.

That is what happened to buying a “starter home” and working your way up.

[pnwmom]

18. Few new small homes are being built, but there are still lots of OLD small homes.

And the preference for new happened long before Boomers started down-sizing.

[Mariana]

19. Are the old small homes generally going unsold in your part of the world?

Where I live, they're snapped up instantly when they're put on the market.

[pnwmom]

20. Homes of every size/age are being snapped up. Last I heard, the Seattle area was the hottest area

in the country.

But I've heard complaints about new houses not being affordable ever since we bought our first 50 year old home, decades ago. So far we've bought three middle aged homes over the years, and all that time I've heard complaints that new homes weren't affordable.

I think we should be focused on whether HOMES are affordable, not new homes.

[FSogol]

24. The market is so crazy here that real estate agents go door to door asking if you want to sell.

[AwakeAtLast]

26. Because housing busts and economic meltdowns

make people want to buy what they like so they aren't stuck with something that loses a lot of value.

I know many who had to foreclose in 2008-09 because no one was buying and those who is were, were being very picky.

[Ocelot II]

2. "Starter" houses are in short supply.

I'm sure I could easily sell my tiny, 130-year-old house (large-ish yard, nice neighborhood, remodeled kitchen) for a decent price if I wanted to sell it. Many people can't afford those McMansions in the new suburban developments (I don't know why they keep building them, and the construction is often crap), so little old houses like mine are selling well.

[marie999]

9. Jacksonville NC I find used houses for sale under $125,000 but everyone seems to want a new one.

And they want the lasts upgrades. They are willing to pay $225,000 and up.

[brooklynite]

15. IOW - developers are making bigger houses because people want to buy them?

[LanternWaste]

21. Much as people like vehicles with worsening gas mileage.

Let's not try to convince ourselves the invisible hand of the market is the panacea of freedom... as it illustrates only a simplistic pretense of cleverness, like blaming Hamas for every explosion that happens.

[Midnight Writer]

11. I looked at some new construction houses recently and was surprised to find the crap construction

These were expensive model homes in a brand new subdivision. I was expecting for the prices listed to see some quality, but it just wasn't there.

I'm not very knowledgeable about construction, and if I can walk through a house and notice numerous flaws then I have to assume there are a lot more problems beneath the surface.

[jmbar2]

3. A bigger problem is that existing homes are being snatched up by investors and hedge funds

In the search for profits, they have gone from financializing commercial real estate to farm land, trailer parks, apartments, and now individual homes.

Zillow now has a feature that if you want to sell your home, they'll buy it. Several other companies are advertising the same service - buying up properties before they ever hit the market.

I fear that the financialization of housing is creating a state of modern vassalage. The costs of housing have far outstripped the wages of working folks who weren't lucky enough to buy a home before the prices surged.

I hope something can be done about it.

[SWBTATTReg]

8. I get at least two notices a week that XYZ wants to buy our place, etc., and we don't have to fix or

do anything...for literally years we've been getting these. And when I sold my house, it sold to the first buyer, literally within a day. In my new neighborhood, my old neighbor's house sold within days. I think perhaps it has to do w/ whether a place is urban or not...I could be wrong but people are rediscovering urban life, and they want it.

[KT2000]

14. Yes! Homes have become financial instruments

I live in upper NW Washington and starter homes are manufactured homes put into large parks where the tiny lot is leased. No security there as the owner could sell the park to private equity firms that are buying them up now. There are also the unlivable meth houses but one would have to pay for demolition.

Realtors keep pushing the limits for sale prices and they are getting the full or over the asking price. This is largely because we don't have an income tax so people are moving from states that do have it - retired people. Subsidized housing has a 2 year waiting list so workers with low income are really out of luck.

It is not right.

[Xolodno]

29. Yes. Its gone from...

...making the right choices, moving out to a new home while renting the old one.... to buy it out, make some minimal improvements and flipping it.

I currently rent a house, but have my name on two others...the nightmare of maintenance, yikes.

But there is a mentality out there that "you have to buy a home" as an investment. Sure the value appreciates, but, no one ever looks in the total they are paying for it with interest. Then you have to consider maintenance, taxes, etc.

And the question, would you be better off renting and shoving the difference into your 401k, financial instruments, etc. or actually buying the home. Then, do you plan to stay in the area? Do you really need all that extra house or are you just showing off? Larger house may actually result in a worse quality of life.

[LonePirate]

4. I've been looking for a condo or an apt because houses are just too big.

I am single and have no kids and neither is likely to change, especially the latter. I have no interest in a 2,000 sq. Fr. house. It is simply too large especially since my immediate family is small. Unfortunately they are not making purchasable condos/apts in my area and the few that are here require far more renovation work than I want to spend. It’s insane.

[Johnny2X2X]

5. Unfortunately this is going to accelerate

Covid caused people to spend more times at their homes than ever before. People realized they wanted more space.

Myself, it’s just my wife and I with our dog in 2700 square feet and 2/5th of an acre. It seemed huge when we bought this place, now it seems just right.

[ananda]

6. Even small houses are expensive here.

I have been happily renting since 96,
and I have saved buckets.

[demigoddess]

12. a lot of the houses I grew up in were two bedroom houses and my parents had 4 kids.

We shared and used rooms that weren''t supposed to be bedrooms. Nowadays that seems to be some kind of crime.

[stopdiggin]

13. it's cheaper to build McMansions

(emphasis on 'cheaper' -- quotation marks around "mansion"--) And they're having no trouble at all (almost anyplace) in selling them. Why stop?

[Yavin4]

16. The Houses that Can't be Built in America - The Missing Middle

This video addresses this problem:

&t=5s

[Celerity]

28. great video

[hunter]

30. This is an excellent video.

I don't think we should be developing any more undeveloped land.

Creating walkable neighborhoods with affordable housing on land that's already been developed at some point in the past ought to be a priority.

[Yavin4]

34. Low density living areas puts a strain on our infrastructure.

Yes, you get a huge house with a big back yard, but you won't be able to pay for the infrastructure, roads, sewage system, electricity, etc.

[cagefreesoylentgreen]

35. This

This right here is why I chose to live in “the hood,” as it were.

Everyone moving into the Vegas Valley seems to be attracted to the southwest and Henderson areas, that it’s put a severe strain on services and infrastructure there. I hate errands that take me out that way because of the congestion.

Houses out that way were expensive even when I was in the market for one three years ago and haven’t improved, averaging around $280k on the lower end. I ended up buying a new build in a working class, minority-dominated neighborhood less than three miles from Downtown Vegas, not a very high demand area. I paid $225k, which would probably be equivalent to a fixer-upper after upgrading it.

When people ask what part of town I live in I get looked at like I’m nuts. But honestly, except for it being a bit of a food desert and lacking in amenities (its working on that), it’s actually pretty quiet here.

But now even the most dilapidated of houses built in the 1960s and 1970s in my neighborhood are going for way above what I paid for mine. The ones that don’t get snatched up in hours or days are truly bottom of the barrel ones that are still overpriced. The gentrification possibilities has me worried.

[leftyladyfrommo]

22. KCMO Myhouse is 750 sq. Ft. No basement. No garage.

Gravel driveway. Pretty big yard. It is 1950 prefab.

These little houses are going for $115 000 if they are fixed up.

I get offers from investors every day. My house needs updating so I wouldn't get top dollar.

[mnhtnbb]

25. I had looked on and off for a small

single family house on one level since 2018. Wanted to stay in or near Chapel Hill. Didn't want to do a lot of fixing up. In November 2019 decided I'd give up on the idea because I couldn't find anything I liked and could afford and just continue to rent.

Then Covid. Widened my search and decided to focus on new construction since I'd signed a 14 month lease and didn't want to end up paying a lot of $$ to break my lease to buy a move in ready house. In April 2020 I found a development I liked and plopped my deposit down for a house expected to be done in December 2020.

The builder offers 6 floor plans--all single level-- from 1500 sq ft to 2100 sq feet. All of them can have a bonus suite added on a second floor making the largest model with the bonus suite 2900 sq ft. I chose the plan with 1776 sq ft, no bonus suite.

My lot was #30 out of 93 in the development to be sold last April. There is now only one lot left where you can choose a floor plan, and one builder spec house and one model.

I have been astonished to see that most people are choosing to build the bonus suites. My house is one of the smallest, among a handful of those with no bonus suite. Most buyers are older with no kids. The houses aren't designed for families with typical yards, but have small HOA maintained front yards and courtyards or back patios maintained by the owner.

The houses started at $401,000 base price when I bought and the developer raised prices several times in the past year. Of course, many design choices were additional $$ and I'm aware of people who added as much as $100000. to their house by choosing upgrades.

It's crazy!

[Wingus Dingus]

27. My current house is 1600 finished square feet

with 1600 ft of unfinished basement--I have no intention of ever finishing the basement so I can claim more square footage. 1600 ft is about perfect--I could go smaller, too. My first house (for the four of us) was 980 sq ft, no basement, 3 bed/1 bath, little 60's rancher fixer upper. As we're facing retirement and a possible move in the future, we'd like another small but newer or new house to cut down on maintenance/repair expenses, but newly built small homes seem just as expensive as the big ones for some reason.

[JI7]

31. In many parts of California even small houses in horrible condition are very expensive

[Johnny2X2X]

32. This is not a bubble

This is a supply and demand situation, not a case like the last bubble where there is plenty of supply, but prices are thru the roof. So while the acceleration in prices of the last year won't continue indefinitely, there might not be a real pull back, more of a slowing of the rate of increase.

If you're waiting for a better time to buy, don't wait, it's not going to be easier next year and interest rates will not go down further.

Get your financing settled, find a good realtor, and go in with strong over asking offers and expect to have to offer several houses to finally get one.

I know people who are trying to buy, but say they might wait it out now, they're making amistake.

[Tracer]

33. There was a real estate segment on the news the other night,

that featured a house for sale that happened to be in my town.

It was a small Cape Cod-style house with an addition clumsily tacked on. The inside was updated to the latest style (the style everyone has these days --- all grey walls, white cabinets and the "necessary" stainless appliances). The asking price was $799,000.

The owner received more than 30 offers on the house, and soon sold it for an overbid of $840,000.

I live in a now-popular neighborhood (it wasn't always) and bought my house many years ago for the princely sum of $24,500. Just a few weeks ago, a new house that is in sight of mine sold for $1.1 MILLION.