Americans find favor again in McMansions

New York /
May.May 24, 2012 08:30 AM

McMansions, a housing type left for dead following the real estate crash, powered yesterday’s positive new home sales report, builders told the Wall Street Journal. During the recession the average size of U.S. homes shrunk 3.4 percent to 2,382 square feet, but in 2011 the average size actually grew 5.2 percent to 2,505 square feet.

Analysts attribute the increase to high-income buyers relatively advantageous perch in the housing market. With lending conditions tight, these buyers are more likely to qualify for mortgages, or to pay for their purchase in cash. As a result, the share of homes built to their liking has increased.

McMansions are generally defined as new homes larger than 3,000 square feet, and several builders told the Journal that orders for such homes have increased. In fact, according to the National Association of Home Builders 30 percent of all housing starts in 2011 were for custom homes, up from 19 percent during the building peak in 2005. [WSJ]


Related Articles

arrow_forward_ios
Photo illustration of Fredrik Eklund and Dottie Herman (iStock, Getty)
Douglas Elliman expands into tight Texas housing market
Douglas Elliman expands into tight Texas housing market
(iStock)
Hot, hot, hot: Resi market sets new price records in March
Hot, hot, hot: Resi market sets new price records in March
The housing market needs 3.8 million single-family homes to meet current demand (iStock)
US needs 4M homes to meet demand from buyers
US needs 4M homes to meet demand from buyers
Brooklyn saw increases in prices, sales and inventory. (Getty, Two Trees)
Brooklyn’s median sales price hit record high in Q1
Brooklyn’s median sales price hit record high in Q1
(iStock)
South Florida hits record $5B in residential sales volume in December
South Florida hits record $5B in residential sales volume in December
Moonbeam Capital Steven Maskin. (iSock, Moonbeam)
Private equity exec picks up $9M condo at Trump World Tower
Private equity exec picks up $9M condo at Trump World Tower
Residential sales surged in November (Getty)
South Florida home sales soar in November, led by luxury properties
South Florida home sales soar in November, led by luxury properties
Single-family saves the day. Q3 resi sales up in South Florida
Single-family saves the day. Q3 resi sales up in South Florida
Single-family saves the day. Q3 resi sales up in South Florida
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...