The American Dream of a two-story home, wraparound porch, and white picket fence is changing. Home buyers are setting their eyes on smaller homes. They want less home maintenance, fewer bills, and more money.
People Prefer Less Expensive Homes
The statistics of the Silicon Valley housing market clearly show people are preferring smaller homes. Since 2007, the percentage of homes selling for $500,000 and over decreased from 13 percent to 6 percent. On the other hand, those selling for $200,000 increased from 33 to 42 percent, which contributes to the 75 percent of all homes sold falling under $300,000. As you can see, the trend of home buyers preferring less expensive homes, which usually correlates with home size, is apparent.
Less Expensive Means Smaller Homes and More Savings
Home buyers have learned a lot since the days of buying whatever they can afford. They don’t want to be house poor. People prefer smaller homes, because they cost less. Less square footage means lower heating and cooling bills. It also means spending less on maintaining and cleaning. Smaller homes typically have smaller yards. Again, less maintenance needed for them.
Home buyers want more for their money. The lower mortgage payments lead to more discretionary income, so they can buy more of the things they need and want. They can go out to eat more, take more vacations, and live life comfortably within their means.
Home buyers have discovered that less is more. They can have a beautiful home, and have enough money to have just about anything else they want in life. Shouldn’t that have been the American Dream all along?