Housing - Why are smaller houses not being built?

[PandaBear]

It is always about money. As mentioned small home cost only slightly less to build but has a much smaller market. I'm guessing that the construction cost of a $250k 2000 sqft house hsa a $100k builiding and $50k land. If you shrink it down to 1000 sqft it would still take about 75% of the land and the construction cost would still probably be $80k (you are only shrinking roof, wall, floor, but still has the same amount of kitchen and bath stuff to deal with, and the permitting etc). People just won't buy something much smaller for only slightly cheaper.

If you want these small houses you have to buy really old, and remodel it yourself. Why not just buy a condo or an old house?

 

[RayCJ]

Smaller houses are not being built for the same reasons toilets and toilet seats are getting bigger. Look at people these days -from behind a lot of them look like barnyard livestock.

 

[Yah-Tah-Hey]

Our city has a new development adjacent to our airport that will have smaller affordable homes to ease the housing shortage that keeps people from moving here to fill job vacancies.

 

[zzyzzx]

Originally Posted by PimTac
An ideal small house would be around 1200sf with a basement. Unfortunately, nobody builds houses with basements anymore.


Another reason to have a custom house built! I see them practically standard in metro areas and less likely in rural areas.

 

[double vanos]

My cottage was built in 1905; does it qualify as quality built? Built with the smaller 2x4s all redwood of some kind. On pilings with metal roof, 1000 sqft.

Any replacement wood is Hardee products.

 

[Linctex]

SOME places - are building "smaller" or "smallish" homes,
hopefully catching the eye of those who have retired, kids are gone, and now need to "downsize".


A newer "little neighborhood" that I am thinking of would be these:

1301 N 46th St
Waco, TX 76710
2 beds 1.5 baths
1,307 sqft
$186,000
https://www.zillow.com/homedetails/1301-N-46th-St-Waco-TX-76710/122521817_zpid/

1201 Drake Ct
Waco, TX 76710
3 beds 2 baths
1,449 sqft
$217,000
https://www.zillow.com/homedetails/1201-Drake-Ct-Waco-TX-76710/117640020_zpid/


That's a LOT of $$$$$$$$$$$ for a relatively small home.

 

[JustinH]

All the builders are building them in south texas.

Lennar, KB, Meritage, etc.

We have a lennar 1450 sq foot house in the Texas hill country its been fine so far, and very energy efficient. Its almost too big for two people.

They have a cottage collection of 2/2 houses 980 sq foot with no garage as well.

 

[aquariuscsm]

Originally Posted by Linctex
SOME places - are building "smaller" or "smallish" homes,
hopefully catching the eye of those who have retired, kids are gone, and now need to "downsize".


A newer "little neighborhood" that I am thinking of would be these:

1301 N 46th St
Waco, TX 76710
2 beds 1.5 baths
1,307 sqft
$186,000
https://www.zillow.com/homedetails/1301-N-46th-St-Waco-TX-76710/122521817_zpid/

1201 Drake Ct
Waco, TX 76710
3 beds 2 baths
1,449 sqft
$217,000
https://www.zillow.com/homedetails/1201-Drake-Ct-Waco-TX-76710/117640020_zpid/


That's a LOT of $$$$$$$$$$$ for a relatively small home.


Here is a beautiful house in Waco,Tx. But it's expensive!!!! This is the style we like. We looked at some here in Dallas,but they all get bought up as soon as they hit the market.

https://www.realtor.com/realestateandhomes-detail/3200-Edward-Dr_Waco_TX_76708_M76511-13885#photo9

 

[Silk]

Something we might be looking into soon. 30 years ago we built a 800 or so sq ft 2 bedroom house, and we had 2 kids, it was great. But a few years later it was 4 kids in a 2 bedroom house. We had planned and had planning permission for another 2 bedrooms, but at the time banks were not lending - you are struggling to pay off your high interest mortgage, we won't lend you another 20 grand. So we had to sell up on a now very expensive off shore island...and 5 years later banks were giving away money. That's life. Now there is a possibility of relocating and building an up to 800 sq ft dwelling on land my daughter and partner will own, my wife and I really keen on this idea, the perfect size house for us. I will of course need a shed of the same size for my workshop....

 

[dlundblad]

Didn't go through the posts, but a small house that you speak of around here would be found in housing additions from the 70s early 80s at the newest. Most look it too, but occasionally the owners will do a somewhat modern facelift.

I get additions having 2 story homes. The biggest expense IMO is the concrete. Is it that much more to add a second story? Of course this is regional.. one close to us would have a little of both whereas ones in the city would have mostly 2 story.

 

[SeaJay]

Most buyers want at least 2,000 square feet in their single family home these days, whether or not they can afford it. So that is what builders are building.

I grew up in a large family and we managed with a one bath house of under 1,000 square feet. It was the most we could afford and made due. My growing up years would not have been any better in a 2,000 square foot house. A little is a lot when it is all you got.

 

[Cujet]

Originally Posted by Mr Nice
All I need is a 3-2-2 ranch style, single story home.



That is in fact what I have. Except I have a 3 car garage. It's downright perfect. No stairs, no basement, no hassles.

I built my home to be ultra energy efficient, with the highest efficiency equipment, and a white concrete tile roof with 2 solar attic fans. It's worked out really well.

I know the OP does not like high ceilings, but I do. Interestingly, in FL where AC is king, cool air stratifies (stays low) and the high ceilings of a ranch home don't add significantly to the cooling requirements. With my stark white roof and fans, the attic remains at or below ambient. Leading to very modest utility bills. Often as low as $60.

I have a hybrid water heater in the garage, which does a wonderful job cooling (when it's running)

I have some solar, but I'd really like to install a large enough array to fully offset my utilities and power an electric car....

 

[Andrew1972]

This is like people asking why don't they build and sell more Mitsubishi Mirages. NO ONE IS INTERESTED except the few.

The energy efficiency of a 2000SF modern energy star home is many times better then an older 1000SF home with normal updates(windows, newer HVAC).

My personal take on real estate is buy/build what is appealing to masses including the SF so you can hopefully make enough money on sale to move where you want in quicker amount of time.

 

[Wolf359]

Originally Posted by Cujet
I have some solar, but I'd really like to install a large enough array to fully offset my utilities and power an electric car....


What's the cost of solar these days? Years ago I met at guy who paid 10k to put in a solar system for solar hot water. I don't think he ever made his money back because a hot water heaters cost to operate on gas is around $20-$25 a month. He would have needed about 30 years just to break even. Needless to say he was trying to sell the house and after 10 years, system looked like it was old.

 

[JTK]

It's a regional thing for sure, but the big difference for my area (Buffalo NY) between buying an older home vs. a new one is the property taxes. My yearly property tax bill for my ~2600sq/ft 1973 built home is about $4700. If I were to build a new home in it's exact spot, my taxes would be double that. I have a family member who lives in a ~7yr/old McMansion on acreage about 3 miles away. Their yearly tax bill is over $12K. Same services I get. Same schools, etc.

Need a heck of a lot of energy savings to narrow that gap.

 

[tony1679]

Originally Posted by madRiver
This is like people asking why don't they build and sell more Mitsubishi Mirages. NO ONE IS INTERESTED except the few.
No, I didn't say bare bones cheap garbage. The more realistic comparison is a Hyundai Elantra. Cheap, small-ish, quality, well-built, efficient, and goes the distance (100k warranty).

Note how well the Elantra has been selling. I also own one.

 

[hatt]

Not many people are wanting new sub 1000 sq ft homes. As a result not many get built. You can buy a suitable lot and build whatever you want to the standards you want. Building a high end little house will likely be a poor choice when you decide to sell in most places.

 

[fdcg27]

Builders and their real estate salesmen ("agents") underlings have carefully trained folks at large to believe that bigger is better, just as with the automakers who've brainwashed a majority of the new car buyers into thinking that they need a four door pickup truck or large CUV when a four door sedan would be more than adequate for their needs.
The coming recession will do a lot to make housing more affordable nationwide.
Just how low things go will depend upon just how overextended buyers are in the most overbid markets.
I know people who paid checkbook dollars for Florida places in the last recession and there were other markets that were even cheaper for real McMansions, like Vegas.
The real estate sales guys like to tout houses as investments, but they really aren't.
They're places in which to live.

 

[hatt]

Originally Posted by fdcg27
Builders and their real estate salesmen ("agents") underlings have carefully trained folks at large to believe that bigger is better, just as with the automakers who've brainwashed a majority of the new car buyers into thinking that they need a four door pickup truck or large CUV when a four door sedan would be more than adequate for their needs.
The coming recession will do a lot to make housing more affordable nationwide.
Just how low things go will depend upon just how overextended buyers are in the most overbid markets.
I know people who paid checkbook dollars for Florida places in the last recession and there were other markets that were even cheaper for real McMansions, like Vegas.
The real estate sales guys like to tout houses as investments, but they really aren't.
They're places in which to live.

How are you figuring houses aren't an investment? You have to live somewhere and rent tends to be more expensive than mortgage payments. After 20-30 years who has more net worth: The guy that has a paid off home or the guy that paid rent and has more rent to look forward to? If you're looking at 5 year returns there is risk, just like the stock market.

 

[Wolf359]

Originally Posted by fdcg27
Builders and their real estate salesmen ("agents") underlings have carefully trained folks at large to believe that bigger is better, just as with the automakers who've brainwashed a majority of the new car buyers into thinking that they need a four door pickup truck or large CUV when a four door sedan would be more than adequate for their needs.
The coming recession will do a lot to make housing more affordable nationwide.
Just how low things go will depend upon just how overextended buyers are in the most overbid markets.
I know people who paid checkbook dollars for Florida places in the last recession and there were other markets that were even cheaper for real McMansions, like Vegas.
The real estate sales guys like to tout houses as investments, but they really aren't.
They're places in which to live.


That's hilarious. It's always the buyer that signs the paperwork. Never been to a closing where the builder or real estate agent has a gun to the head of the buyer. Never heard of that happening. I guess it's completely shocking, just shocking that people actually want to buy bigger houses of their own volition. Same with cars. Just look at the sales numbers for sedans. The market builds whatever the buyers want. What the buyers want can be fickle though, when gas prices are high, they buy smaller cheaper cars, when gas is cheap and the economy is booming, they buy bigger gas guzzlers. Then the car makers scramble to produce what the public wants.