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
D.R. Horton's Donald Horton with The Church of the Visitation and the Diocese of Trenton (D.R. Horton, Alchetron, Getty)
D.R. Horton wants to be king of the woods
D.R. Horton wants to be king of the woods
New Orleans Pelican CJ McCollum and 869 South Stonehenge Terrace in West Linn, Oregon (Google Maps, Getty)
New Orleans Pelican CJ McCollum lists Oregon home for $3.5M
New Orleans Pelican CJ McCollum lists Oregon home for $3.5M
From left: Ben Uretsky, Mitch Wainer, Jesse Mauro, Marc Hartman, and Alec Hartman (Welcome Homes, Getty)
Home building startup raises $29M in Series A
Home building startup raises $29M in Series A
A photo illustration of Arizona Cardinals' owner Michael Bidwill and 7451 N Las Brisas Lane in Paradise Valley (Getty, Google Maps)
Arizona Cardinals owner unloads Paradise Valley mansion
Arizona Cardinals owner unloads Paradise Valley mansion
Home Sales, Housing Market, Redfin, Concessions
With buyers holding the cards, more sellers sweeten resi deals
With buyers holding the cards, more sellers sweeten resi deals
(Getty)
Pending sales dip to second lowest on record
Pending sales dip to second lowest on record
From left: Blackstone's Stephen Schwarzman and KKR's Henry Kravis (KKR, Getty, Blackstone)
Wall Street has $110B for homebuying spree
Wall Street has $110B for homebuying spree
(Photo Illustration by The Real Deal with Getty)
Home sales’ November decline was largest in 10 years
Home sales’ November decline was largest in 10 years
arrow_forward_ios

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

Loading...