Social trends influence real estate development – what little of it there is right now – and the result is a meandering set of styles, attributes and value systems in the fabric of the marketplace as time marches on.
This piece from Slate speculates about the waning appetite for the super-sized “McMansion”, characterized by extra bedrooms, gigantic kitchens, and above-average square footage, that were increasingly sought after as the real estate bubble was inflating a few years ago.
I think these are pretty easy to find in certain Bay Area suburbs.
Get a mortgage rate quote for a McMansion
Those homes still exist. Even if the demand falls, it’s not like they’re removed from the market. But after a few years of punishment for living on too much credit, does the consumer psyche have what it takes to justify so many extra bedrooms? Or a fully functional outdoor kitchen? Does that imply that the McMansion is hit harder on value in favor of more practical options? It wouldn’t surprise me if the data supported this idea.
What about when we bounce back from this mess – has the consumer credit monster been lobotomized? Was that just a crazy fad like bell bottoms?
Guess you better slow your mustang down…
Take a look at what happened in the auto industry in the early 80s – after a bout of hyper inflation and skyrocketing fuel costs, gas guzzling muscle cars like the Dodge Charger, Pontiac GTO, and Plymouth Road Runner fell out of favor to the newly energy conscious driver. Compact fuel efficient models took over the marketplace until society worked out the hangover of high prices. And that’s when the SUV arrived.
Now that we’re becoming fuel cost-sensitive again, I happen to find myself in need of a large vehicle while everyone else is chasing after the hybrids. Politics aside, there are some sweet deals on the big thirsty family haulers these days…
I looked in the mirror, a red light was blinkin‘
So if the McMansion is declining in appeal, I doubt it will last. Now might be a good time to go bigger on real estate in a sector that is in a bigger state of decline. In 2006, everyone wanted the McMansion. Now, they’re half as expensive, and there’s concern about value decline… I wonder if in a few years we’ll look back and think do that whole woulda coulda thing…
If you’re shopping for a new home, how has the recent environment shaped the profile of your target property?