Looks like some Americans are seeing the error of their ways, downsizing their soulless McMansions (and those heating and air conditioning bills) for a simpler way of life. Three cheers for anyone so smart.
My take: Shallow people who view their possessions as the most important thing in their lives live in McMansions. Unless you have eight kids, do you really need eight bedrooms and 8,000 feet? Maybe they'll sell the Hummer too...
Watch out below at the high end of the market - the McMansions are going to get slaughtered first.
Americans are carrying a lot of excess weight and desperately want to slim down. No, not their waistlines -- in the size of their homes.
"Steeply deteriorating." "Hard landing." "Kaput." These are some of the terms used by analysts to describe the slowing of the U.S. housing market. And with the glory days of home-price appreciation now over, some homeowners are declaring, "Downsize Me!"
A huge gap between the supply of homes for sale and demand for housing means prices are leveling off -- and could tumble.
David Horwitz and his wife, Diane, are the type of homeowners looking to streamline their expenses and unload their roomy homes for more humbler abodes.
The Horwitzes, both semi-retired, just moved into a 1,200 square-foot apartment on the Upper East Side of Manhattan after living in a 2,200 square-foot home in Scarsdale, New York.
"Our property taxes went down by 1,000 percent, the ConEd (bill) was cut by two-thirds and the cost of home maintenance was reduced by at least 50 percent," said David Horwitz. "No gardener, no roofer cleaning gutters, no tree spraying, no snow removal, no exterior painting every six or seven years."
The Horwitzes, who have no mortgage, plan to reside in the apartment for a while, so even if prices fall it is of little significance to them.
"Homeowners are probably sensing now may be the right time to get the best price before the market cools further," Ramirez said. "Some of these homebuyers are empty-nesters now finding their homes are larger than what they need and more than they can handle."
The average home size went from 1,500 square feet in 1970 to more than 2,400 square feet in 2005. During the same period, the average household size declined, from 3.11 to 2.59, he said.
August 14, 2006
House pigs waking up, now downsizing the McMansion
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48 comments:
oink!
stupid example. I live inthe upper east side, in a 925 sqft apt, and it costs $4,400/month. You dont "downsize" to the upper east side in a 1,200 sqft apt. They went from living in a really expensive town in Westchester County to renting a really expensive apt in Manhattan. He must be selling his M5 to lease a new E55 too.
Brahahaahhaha. You pay $4,400 a month for an apartment. FLUSH. I pay $500 a month for a 3800 sq ft. house. I'm going to give you some free advice. Get outta of New York City. It's a turdhole anyway.
Yes, I'm sick of oversized houses. Its all about image, a big house so I can throw big parties (oh I don't have any friends) A giant kitchen for cooking ( can't cook ) I have made lots of money building these oversized boxes and most of the owners are living in a fake world, where the house will make them someone their not. The huge kitchens really make me laugh. No one uses them and out in the garage (which is usually filled with stuff) is a oversized freezer fill with food that is all prepacked microwave crap. I love talking to the owners and listen to their reality and see their life through my eyes.
Yes I think you'll see a worldwide backlash against consumerism in the coming years. Less will be more, smaller will be bigger, saving will become popular. We as a society are all just plain simply exhausted of this rat race of trying to earn more, get bigger homes, get second or third houses, more toys, outlandish vacations, out-do your neighbors, ad nauseum. People are finally going to realize that more sh*t means more stress--you have to protect all your assets wherever they may be, maintain them, pay taxes and insurance on them, use them in order to justify owning them, upgrade them, etc etc--it just results in a bunch of restless sleepy nights that can give people ulcers and cancer. People are going to wake up and realize that we are all really just renters here on this earth--you can't take any of this sh*t with you. Ones health is much more important that money or things. Same with friendships and meaningful relationships. Any of you who have almost lost your own life due to a serious accident or illness at an early age in life know what I'm talking about. The rest of you--well--you have been blessed so far, but you too will find out eventually as you get older, or not.
The Horowitz's are losers. Gardener? Get off your lazy fat ass. Roofer cleaning gutters? Do it yourself you fatass. Man I hate people. I have over 2 acres of landscaped yard and I do it myself. I don't weigh 300 pounds like this fat waste of oxygen.
What happens when they can't sell those suckers? One of the local contracters in my town bought an old slab ranch ~900 sq ft and turned into a nice 2500 sq ft colonial on a little more than 1/4 acre. The property cost tops $300K when he bought it in the early 2000s and maybe he put $200K into it even though he and his little mexican workers did everything themselves. He lived there for several years and is now trying to unload for $1.3 million. There are lots of nice houses in this community in better parts of town and on larger property from $750-1M (76 of them to be exact - it's a small town so that's a big number) - can't imagine what he's thinking trying to get that much more than it's worth - maybe he's feeling the pinch of the drying up construction business and hoping the profit will carry him thru the dry spell. Maybe he should try working for a living instead of riding on the backs of the mexicans that are doing all of the work.
house pigs - love it!
Another problem not addressed is the fact these moster houses are being built on smaller plots of land. I see it a lot in the "upscale" LaLa land beach community I live in. As far as I'm concerned, it just makes the area look like an overpriced slum. Heck, there are virtually NO yards or garages whatsoever to speak of.
On another related topic - I REALLY do need a large kitchen since I do ACUTALLY cook/bake on a regular basis. It's cheaper for me to cook/bake in bulk and brown bag than to buy lunch. That's the main qualm I have about renting an apartment...
Why all the Horowitz hate? They made the move as required by the Housing Panic Official Rules of Life -- cash out of an expensive SFH & rent. Furthermore, no one here knows if they are fat, lazy, etc. Mr. H probably places a higher value on his time than what he pays to clean his gutters. Having made a living doing house maintenance, I don't blame him.
BTW, renting in Scarsdale is a relative bargain. Owning is a different story. Taxes alone can easily hit $2,000.00/mo.
my favorite is the retired couple buying a plot of land and building the 4000sqft "dream" castle so they can sit on their asses and watch tv in the giant living room. yeah, you earned it buddy.
Yeah, I know, what a strange concept in this country--people get to spend their money however they see fit. Somebody ought to stop that.
since when do you need a big kitchen to cook anything? last time I looked it took a stove, sink and fridge to make a meal, not two islands and 600 sqft of kitchen space. for christs sake people, get a friggin clue. the amount spent on kitchen remodels could be spent eating out at fancy restaurants each night. also, since when did americans grow extra assholes requiring the need to build 3.5 bathrooms? hell, the brady bunch only had two for 9 people why do retired couples need 3-4? is it because we're all so fat and piggy that we eat and shit constantly?
spend your money how you see fit, just don't piss and moan when you get the utility bill or go to fill your hummer.
Who was pissing and moaning, other than those posting here about how someone chooses to live their own life?
it was rhetorical pissing and moaning, not directed at anyone on this blog - yet.
the more money you have, the more entitled you are to waste resources - the american way.
Yes I think you'll see a worldwide backlash against consumerism in the coming years. Less will be more, smaller will be bigger, saving will become popular. We as a society are all just plain simply exhausted of this rat race of trying to earn more, get bigger homes, get second or third houses, more toys, outlandish vacations, out-do your neighbors, ad nauseum.
Worldwide? Maybe not.
China is revving up into an orgy of exactly what you describe: frenzied hyper-consumerism, massive materialistic competitiveness.
What's going on?
Take 50 years of Communist deprivation, insourcing higest productivity capital and knowledge stolen or donated willingly from the wealthiest companies, then (the most important) 1.3 men for every woman, ---stir
ust spray some chemicals on the lawn cause I'm too lazy to pull a few weeds - hell I got another bathroom to build.
"since when did americans grow extra assholes requiring the need to build 3.5 bathrooms? hell, the brady bunch only had two for 9 people why do retired couples need 3-4? is it because we're all so fat and piggy that we eat and shit constantly?"
rotflol- I just spit coffee through my nose!!
OMG...the Brady Bunch was REAL?! Silly me.
Jayman1957-
"...all that is being built is $750,000 monsters,like right here in my town.
Of course this is where the big profit is!!!!"
You are right on the money.
Just like the big profits where in the oversized SUV's, same with houses. As the auto industry goes, so will the homebuilding industry go.
Big House = Big Profits.
Farm Girl
China and the rest of Asia is going to be in a world of hurt once the West stops spending like there is no tomorrow.
I was working on a 5700sf house up on a hill in Oregon. The tax man showed up and gave the owner an estimate on property taxes. You should have heard that man cry, " they even tax you for the view" Keep in mind, it will just be one retired couple living there. Then he got a electric bill," boy power sure has gone up" I just keeped working and taking my pay check every week. Listening to the owner cry.
This epitomizes consumer excessiveness. But I'm feeling good that financial darwinism is taking hold and driving these people to bankruptcy.
But until something happens (a huge depression maybe? $10 dollar gas?) American consumer piggery will grow and grow.
Snif Snif Snif smells like shit! where can I buy that perfume it is the latest thing you know.
no ones telling you how to live or spend, we're just ridiculing it. no harm satarizing other peoples stupid decisions is there? especially when greed and blind consumerism is involved.
maybe your name is actually sittinfatsandiego? now go hump your hummer because I told you to cause I know everything.
who's face did you tattoo on your ass dude?
OUCH that must hurt, beside the pain of tattoing you ass you also picked a kick me here face - dude you are sick - I have a friend that can maybe help you, but it is not cheap for Ass Saving these days.
do you shit with that mouth?
"This Blog has the wrong name it should be = We Tell Others how to Live because we are all Knowing! WTF is wrong with all of you?"
In 100% agreement. Go live in communist country if you want someone controlling what you can and cann't spend your money on. These folks that are spending too much, don't you worry they are about to get a nice education in money/debt management. The HARD WAY!
I must live in a communist country because I just CAN'T spend my money on an overpriced pos. I just CAN'T spend my money on a hummer. I just CAN'T spend my money on a boob job for the wife (don't need to actually she's got a hot rack). I just CAN'T spend my money on granite counter tops and another bathroom. da comrade!
While I agree with your perspective and am as disgusted by the absurd level of hyperconsumerism that defines our culture as anyone I know, the article is actually based only on a couple of anecdotes involving New York City. I'm not sure it's a good way to gauge a trend. If you look at another potential trend, particularly in rapidly growing Asian communities, you might notice multiple generations living under one roof more than ever before. Such an increase in household size would tend to support demand for oversized houses, wouldn't it?
what rapidly growing asian communities? which asians and how many per household? and where?
I'm not calling you a liar I'm honestly curious what the statistics are cause it's not my experience where I live but where I live isn't typical. It's latinos here and rich rednecks, the latinos are generally more pleasant to be around. the sad confused elderly hippies are a little bothersome too.
point of reference - I think people should be able to do whatever they desire (as long as it's among consenting adults)
Buy 5,000 sq. ft. houses, drive Hummers, shop at Wal-Mart. Knock yourselves out.
But I'll call them gluttonous fools, I'll call them pigs and I'll call them greedy, self-centered frauds.
But they can do whatever they want to do.
The Repo man will be making bacon out of these piggies very soon !
When Poverty Walks through the Door..Love Crawls OUT the Window. Kiss the Dream Pig and the Wife...Bye ..Bye !
"What asian communities aren;t growing rapidly...once you see one well, there goes the neighborhood."
Wait a minute, weren't Asians suppose to be the model minority? You know... the new eastern European Jews or Greeks of America but with epicantic eye folds?
A board full of self-righteous racist idiots
Hmmm, reading about hyperinflation it seems those with big houses got richer and then owned hundreds of houses? Hmm, in Germany during the hyperinflation of 1922-23 there are records of people selling their homes and before they could take the cash to Switzerland they couldn't buy a postage stamp with the fiat money. The story of the woman who begged the baker to take her 1 million in marks to buy a loaf of bread and he agreed, then took the basket of money and dumped it in the garbage but kept the basket. Real things will have real value as our currency continues to be inflated and devalued. Do you think that the dollar to the Canadian dollar rose from .64c-91.c purely on economics or because our dollar is devaluing faster? Or the Euro from 82c-1.29c? That is a 50% increase in the value of the Euro or a 50% decrease in the value of the dollar.
"Do you think that the dollar to the Canadian dollar rose from .64c-91.c purely on economics or because our dollar is devaluing faster? Or the Euro from 82c-1.29c? That is a 50% increase in the value of the Euro or a 50% decrease in the value of the dollar."
That's known as a bearish channel. Remember, the 90s was the last decade of the so-called strong dollar policy so perhaps the Euro and USD were really at parity, during the tech bubble, but the forex overvalued the USD to the Euro due to Euroland's underperformance.
Hyperflation is what happened to the Turkish Lira when it went from 9 Lira to 1 USD, in the late 60s, to 1.6 million Lire to 1 USD by 2001. When the USD breaks into the 3-10x the amount to buy a single Euro, then we have hyperinflation, otherwise, we're in a bearish cycle. Still, keep some gold or silver around if that were to happen.
Not everyone "chose" a McMansion - it's more like they were told what they wanted. Saw it in a magazine, the paper, or drove by one and that's when they realized they had to have that useless towering foyer with those "yuppie scupper" windows, as P.J.O'Rourke calls them. This differs from someone blowing their wad on a truly idiosyncratic dream - something which might not even involve a house. McMansions are someone else's idea of a status symbol. Did any purchaser actually talk with an architect? No - they picked from the two or three models the builder allowed them to choose from. Wow. American individualism at its finest.
It's called a McMansion because a real mansion is built with slate, stone, oak floors, and solid plaster walls, with baseboards as wide as your hand, and a proportionate front and back yard. McMansions are built with the same flimsy materials used in other contemporary house construction: particle board, plastic siding, drywall, pergo, and take up the entire lot. And BTW, granite, though pretty, is not the best surface for cooking.
By the time the price comes down on McMansions, they will be in bad shape, sagging and water damaged. There is no more old growth timber as was used in genuine mansions - lasts 500 years.
a.creampuff, you nailed it baby (or dude).
I'm a dude. "A real creampuff" is realtor-ese - not sure what it's supposed to mean, exactly - low maintenance? ready to move in? cute?
They use this for used cars, too, with about the same level of sincerity.
In a previous thread, someone was complaining about how many people have gone soft, maybe figuratively, but for sure literally. My Dad always used to say "we're turning into a nation of marshmallows!" As for me, I'm not a mental/physical Olympian, but modestly assert that I'm no creampuff/marshmallow man. Keep sharp, dude.
I'm a dude. "A real creampuff" is realtor-ese - not sure what it's supposed to mean, exactly - low maintenance? ready to move in? cute?
They use this for used cars, too, with about the same level of sincerity.
In a previous thread, someone was complaining about how many people have gone soft, maybe figuratively, but for sure literally. My Dad always used to say "we're turning into a nation of marshmallows!" As for me, I'm not a mental/physical Olympian, but modestly assert that I'm no creampuff/marshmallow man. Keep sharp, dude.
Favorite book title, "How to buy a home when you have No money!"
I guess things are a little different nowadays!
When i was a kid, if you didn't have it, you didn't get it!
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