Homes are shrinking. Is it any surprise that, despite this, buyers are paying more? Then there's Canada, where buying a new home could lock you into renting for life-saving essentials, such as heat!
There are a host of problems coming together in a "perfect storm."
One part of it is the failure of centralized planning. The higher the density of housing, the higher the tax revenues. Stricter building codes and environmental regulations drive costs up as well. Most jurisdictions don't even develop their own regulations. They just pay for generic building regulations and ordinances.
For builders, there is a lot more profit in building more expensive homes on any given property. There is little incentive to build anything to be more affordable. On top of that, to meet increased costs required by building regulations, they cut costs elsewhere. Also, as two income families have become the norm, there is a huge incentive to maximize those previously untapped second incomes.
Go back a few years, homes were much smaller. You would find three bedroom homes around 1000 sq. ft. with one bathroom that were within reach of a single income family. Most buyers wouldn't even consider something of that type now.
Yes, it's not just the size of the house. It is all the extras that have become expected. The Walk in closet, the marble counter tops and the cherry wood floors.. Central air and heat, Central vacuum cleaners, granite dog bath tub, swimming pools, large patios and decks. I remember the days before matching appliances and 40'000scfm vented range hoods!
My sister, 63 yrs old, opted to sell her 2500 sqft home and purchase a 399 sqft tiny home! She absolutely loves it. She got rid of most of her possessions she didn’t really love, gave a lot to her 2 daughters who were starting their own homes and rented a tiny storage unit for things she couldn’t bear to get rid of. I thought it would be claustrophobic, but it’s not and she points out that she basically lived in her kitchen and living room in her big house and just used her bedroom for sleeping. She loves living in a tiny house community and loves being free of clutter. I guess there’s a lot to be said for downsizing, at least for some of us.
It is a bit unfair to point all the blame on the monetary system. We are having less children, and more and more people are single living alone. Families are fractured and decimated. There is far less demand for the same type of housing that was built in the later part of the 20th century. Many people just don't need as much space, so why not live in a shed? I started to build a bachelor hut and the neighbors are already nicknaming me Bubbles (Trailer park boys character whom lives in a shed)
And to your point, houses are returning to post WW2 sizes. My first home was built in the early fifties, 1200 sq ft, 3 bed, 2 bath. My mortgage was less than $400 when I purchased the house in the 1976!
There are a host of problems coming together in a "perfect storm."
One part of it is the failure of centralized planning. The higher the density of housing, the higher the tax revenues. Stricter building codes and environmental regulations drive costs up as well. Most jurisdictions don't even develop their own regulations. They just pay for generic building regulations and ordinances.
For builders, there is a lot more profit in building more expensive homes on any given property. There is little incentive to build anything to be more affordable. On top of that, to meet increased costs required by building regulations, they cut costs elsewhere. Also, as two income families have become the norm, there is a huge incentive to maximize those previously untapped second incomes.
Go back a few years, homes were much smaller. You would find three bedroom homes around 1000 sq. ft. with one bathroom that were within reach of a single income family. Most buyers wouldn't even consider something of that type now.
Yes, it's not just the size of the house. It is all the extras that have become expected. The Walk in closet, the marble counter tops and the cherry wood floors.. Central air and heat, Central vacuum cleaners, granite dog bath tub, swimming pools, large patios and decks. I remember the days before matching appliances and 40'000scfm vented range hoods!
My sister, 63 yrs old, opted to sell her 2500 sqft home and purchase a 399 sqft tiny home! She absolutely loves it. She got rid of most of her possessions she didn’t really love, gave a lot to her 2 daughters who were starting their own homes and rented a tiny storage unit for things she couldn’t bear to get rid of. I thought it would be claustrophobic, but it’s not and she points out that she basically lived in her kitchen and living room in her big house and just used her bedroom for sleeping. She loves living in a tiny house community and loves being free of clutter. I guess there’s a lot to be said for downsizing, at least for some of us.
400sf is small. But, certainly doable. I am opting for 720sf. Where I live now I basically use 1 room. I own chairs I haven't sat on in 4 years.
It is a bit unfair to point all the blame on the monetary system. We are having less children, and more and more people are single living alone. Families are fractured and decimated. There is far less demand for the same type of housing that was built in the later part of the 20th century. Many people just don't need as much space, so why not live in a shed? I started to build a bachelor hut and the neighbors are already nicknaming me Bubbles (Trailer park boys character whom lives in a shed)
And to your point, houses are returning to post WW2 sizes. My first home was built in the early fifties, 1200 sq ft, 3 bed, 2 bath. My mortgage was less than $400 when I purchased the house in the 1976!