There was a tune when a large percentage of homes built were called “starter homes”. Expandable Capes and/or 5 or 5 room ranches. Bought by young couples who were well able to afford them as the family grew and it was time to move to a larger home.
Entire homes THEN sold for the price of USED cars today.
Further, are any SMALLER homes being built, at any price?
I do NOT believe the problem is a lack of desire, but a lack of ability.
You shovel money to those who, up front, can’t afford them, you end up with another bubble. SENSIBLE young people are watching their finances, and staying away.
“SENSIBLE young people are watching their finances, and staying away.”
Sensible people of all ages are watching finances and staying away.
“Further, are any SMALLER homes being built, at any price?”
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Not that I can see—and you are so right about starter homes. They were a great way to get an affordable home.
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I recently downsized from 3,000 sq ft to an 1,100 3/2. I love it. Power bill under $100 most of the year. They’re hard to find. This was built in 1981. Only condos are being built this small here in Florida.
Small homes are outlawed in many areas by zoning. Even apartments in many areas have minimum square footages ... like 600 square feet for a studio apartment!
Many 3 bedroom homes were not much more than that, around 850 or 900 square feet in times past.
Zoning is what is keeping smaller houses or even affordable apartments from being built. If you lived in a smaller apartment that was affordable to build (and therefore affordable to rent) you could save up money for a down payment for a house. That’s what I did many moons ago. I think our first rental place was around 500 square feet.
Then we rented a 2 bedroom apartment that was around 800 square feet and we thought it was YUGE. We saved up to buy a 2BR house that was not much bigger than the 2BR apartment but it had a 1 car garage, which was a luxury at the time. It was on 1/4 acre so it felt even more spacious. This got us on the home ownership ladder and even if we had not moved “up” it was a nice place in a nice neighborhood ... and we could have added on easily.
In many areas you cannot build anything that small by zoning code. Minimum size for house in many areas is 1,500 square feet and usually other minimum requirements which push up the construction costs.
Habitat for Humanity cannot build in many communities because their houses, which are usually very well designed space-wise are around 1,200 square feet, are not allowed.
You sound like a candidate for the tiny house movement.
http://www.housebeautiful.com/design-inspiration/house-tours/g2370/tiny-houses/