Did you know small homes are popular? It’s called the “Small House Movement,” and it’s very real for some people, to different degrees and for different reasons.

There are two big forces in the country right now: The Economy and The Environment. These forces are causing people to buy more fuel efficient cars, for instance. It’s also leading people to favor smaller houses.

In terms of home building, home sizes fell every quarter of 2008, ending up with new homes 7% smaller overall from the previous year — the first year of declines since 1994.

Not only is it more expensive to buy a big house at the beginning — your mortgage payment is more, your down-payment will probably need to be more. It’s also more expensive to heat a big house, to furnish a big house, to carpet a big house – etc. (Have you ever noticed how much draperies are for those HUGE windows compared to a standard sized window? All of these things add up in a big home.)

There’s also been a lot of speculating — whether it’s true or will even stick remains to be seen — that the economic troubles have caused people to downscale and think about what’s really important. Not big shiny houses or material things, but family, comfort, and simplicity. (Not that we will be surprised when the economy fully rebounds someday and consumers are ready for more, more, more.)

Another factor is that people who have environmental concerns are moving toward the city center. This is not only more eco- and econ- friendly by cutting down on driving, but allows families more time to spend together and have more amenities close at hand. Houses are smaller in the city! Anyone who’s shopped for a home in Cincinnati knows this. (Now, these city neighborhood houses may not be cheaper to buy, but they will continue to be cheaper to heat, etc., because of their size.) Not only that, but spending less on power and having less “stuff” is a much, much more eco-friendly way to live. This is really starting to matter to some people.

I can speak personally about my experience both as a Realtor and as a homeowner.

I do a lot of my work in the city neighborhoods, so I may be ‘biased’ toward smaller homes. I often help clients sell or buy in the Hyde Park, Oakley and Mt. Lookout areas where homes are between 1500 to 2000 square feet. The average home in these areas has 3 bedrooms and two bathrooms. Many people with 2-4 kids choose to stay in these types of homes and make them work — with very happy results. They might make a sacrifice on size because they like the walking distance to amenities or certain schools.

In many cases these same families can find a larger home outside the city, but they hesitate to move away from the city core for the reasons we’ve just mentioned: walking distance to amenities, close to work, schools they like, etc.

Small <> Old

Don’t always assume small houses are old houses, either. Many people buy big because they want something newer. But builders now aren’t only building 3,000+ square foot homes. And many of our established suburbs feature entire neighborhoods of smaller homes, designed for young families in various decades of the 20th century and even now. Phases of home construction have always included smaller homes. It’s only that bigger homes have become more attainable, and are no longer considered “mansions,” only for the rich as they may once have been.

Clients who choose to move into larger houses sometimes find surprising results! I find that when I sell a larger home to buyers and follow up with them after a few months in the home, they comment on how much more expensive it is to heat and cool, and sometimes even admit they don’t use the whole house!

When you buy a larger home, your energy and maintenance costs go up, in addition to your time caring for your home; more bathrooms to clean, more carpet to vacuum. What a shame not to use a bathroom and still have to clean it!

Making Every Square Foot Count

As for myself: I have an 1800 square foot home, and I’m choosing to stay in, despite the fact that I could potentially “afford” a 4000 square foot home 10 miles away. Instead, I choose to organize my space to keep from feeling cramped. I have great closet systems, a storage area in the basement and a shed out back. Sure, we could sell the house and get a bigger one to hold more stuff, but instead I purge the stuff I don’t need and take it to Goodwill! (I’ve done this three times in the last 2 weeks… remember what we said above about the satisfaction of simplifying?)

I’ve put a new roof and windows in my home, and want to stay in it to earn back that investment — we couldn’t get that money back if we sold tomorrow anyway. I’m sure there are many people in this situation, and I work with them all the time.

Also, I hear all the time after we work on staging for sellers: “I love the way my house looks, so open and organized! I should have lived like this before! I don’t need to sell now, ha ha.”

Of course, sometimes they really do need to sell, due to a new job or other needs. And it’s understandable that space is at a premium for large families with several children or an aging parent living in the home.

But some of us who might be feeling cramped just need to learn about how to make the most of the house we have, and understand that bigger isn’t always better. We de-clutter, get rid of stuff we don’t need, realize we don’t need 10 bathrooms or a separate “media” room — and we live better in the space we have enjoying our lower power bills and minimal cleaning time. Maybe this is a “small” (pun intended) thing we will take away from our tough financial period and looming environmental concerns. This idea could stick, and carry us into the future enjoying a home that meets our needs without a lot of excess.

Just for fun, we’re going to visit another side of the small house movement in separate blog entry! (We’re talking seriously small houses.)

If you want to read more about the small house movement, check out this incredible list of links from NAR:

Field Guide to the Small House Movement

Here’s just a few of the stories they found:

• “A Return to Living Within Our Means” – Chicago Tribune
• “McMansions out of Favor, For Now” – Wall Street Journal
• “The Incredibly Shrinking Home” – CNNMoney.com
• “The First Step to Downsizing your Life” – Small Living Journal
• “Americans are Moving on Up to Smaller, Smarter Homes” – USA Today

Related...

• May 7, 2009 -- Cincinnati Homes are Selling, but…
• January 27, 2009 -- Help your neighborhood – buy local!
• April 14, 2007 -- Market Analysis: Apprectiation and Treating Your Home As An Investment
• April 29, 2011 -- Hyde Park Farmers Market Opens Sunday!