McMansions Giving Way to New Urbanism

McMansion is a term which first came into use in the United States during the 1980s as a description of a particular style of housing that is constructed in an assembly line fashion similar style of production of food at McDonald’s fast food restaurants. So-called “McMansions” often have a large footprint, cookie-cutter designs, similar architectural styles, and are often located in a newer, larger subdivision or replace existing, smaller structure in older neighborhoods. 

While I can see lots of ego inflating reasons why a small family would need an average of 4000 sqft for their main living space, I don’t see this lifestyle as sustainable considering our country’s economic outlook and the convenience based focus that so many Americans obviously crave.  It also doesn’t take much to see that there are a lot of people whose waist line would benefit from a little more walking and a bit fewer drive-thru meals.  What I see happening over the next few years is a large number of small families moving out of suburbia and adopting a New Urbanist lifestyles.  

A few reasons why I see this happening: 

Suburban real estate market decline – This is having a major effect on developers’ attitudes toward what they build when they decide how much capital to put into each project that they start.  There is also a collateral effect in the market whereby consumers’ wealth and attitudes toward real estate have been adjusted to a point where an investment in a home costing 4x their annual earnings might not seem like such a realistic or wise investment.  

Inevitable real estate rebound – While housing prices are likely to take a long time to come back to their 2006 glory, the fact remains that land is a finite resource and will not (under most circumstances) decrease in value over the long term.  Decreased buying power will bring a necessity to build smaller, more affordable housing for middle class people in order to meet their adjusted affordability. 

Urban Gentrification – In simple terms, refurbishing and or modernizing older, neglected homes in order to either occupy or re-sell (flip) them for a profit.  This brings new housing opportunities to suburbanites interested in the conveniences of living closer to urban centers. 

No end to rising fuel prices – This is going to be a major factor that will bring to a tipping point the decision by many people who have in past years tolerated their long commutes from distant suburbs to work (and play) in city centers.  Coupling the increased cost of fuel with what they have historically tolerated in terms of lost time with family and the aggravation of sitting in traffic, the lack of any end in sight for gas price relief will be the deciding factor for many. 

Urban renewal driven by market demands of New Urbanists – Bundling the points mentioned above with new options in zero-lot-line luxury accommodations springing up in most major cities across the US and western Europe makes a New Urbanist movement a logical step in this progression.  I’m not just referring to the economic aspects of real estate and gas prices.  The convenience of having restaurants, theatres, etc. within walking distance is a big factor for many people. I also see the “green” movement toward reduced emissions from driving less and overall consumption as another motivating factor. 

Personally, I can’t stand the fact that every time I want to go anywhere I have to get in my car because the nearest commercial establishment is 2 miles from my home.  Yes, I do see myself as fitting into the New Urbanist progression as I consider my next move.  Now I just need to find someone in the market to buy my McMansion.