The year was 1990. Cheers was America’s favorite TV show. MC Hammer had a hit with “U Can’t Touch This.” And the LA Times first reported on McMansions. That housing trend had a long run. But today’s homebuyers have shifted away from super-sized houses.

Building Homes to Fit Modern Lifestyles

Responding to the needs and preferences of homeowners, builders are increasingly constructing more compact living spaces. Median new-home sizes have dropped four percent in the last year, a decrease for the third consecutive year. “Smaller and taller” is now the trend, as evidenced by townhomes accounting for one in five newly constructed homes last year.

Why are smaller homes trending?

Several factors:

  • Affordability: With construction costs and housing prices rising, smaller homes are often more affordable (and therefore more accessible) for many homebuyers.
  • Changing Lifestyles: Forbes cites a recent survey finding that 81% of respondents want homes with simpler designs. Instead of maximum square footage, consumers prioritize flexibility, minimalism, and living spaces that are easier to maintain.
  • Land Availability: Land for development is increasingly limited, prompting builders to construct homes better suited to smaller lots.
  • Environmental Concerns: A reduced environmental footprint through lower energy consumption isn’t just good for the planet. Heating and cooling costs have soared in the United States; the bigger the home, the bigger the utility bills.
  • Changing Demographics: Millennials have shifted the housing market, surpassing Baby Boomers as the country’s largest group of homebuyers. In 2024, Millennials will make up about 38% of the homebuying market. These younger homeowners don’t want the same homes as the generations before them.

The “bigger is better” mentality that took off when mullet hairstyles ruled has given way to a new era of thoughtfully designed, more compact living spaces.

Financing the Right Home for You

Today’s homebuyers have a variety of needs beyond home size. That’s why we offer a range of financing options that meet the unique needs of buyers and their budgets.

If you’re looking for a low-down payment, a conventional loan may be the right choice. Borrowers with lower credit scores often consider FHA loans. Wish to build your dream home? It’s easier than you may think with a One-Time Close home construction loan. Our top priority is finding the best fit for your scenario.

No matter the size, we’re here to help you purchase your next home. Would you like to know how? Contact a member of the Decker Group online or at (972) 591-3097.