Real Estate Trends
The number of residents per household had been on a fifty-year decline as our wealth grew, but that trend has suddenly reversed—thanks in large part to the downturn in the economy.
The trends in home size have been a fascinating spectacle to watch, especially here in Florida. St. Petersburg, for example, experienced a boom in the 1950s that is still evident today in the prolific number of two-bedroom, one-bath, one-car garage (or carport) homes. These were designed for the flood of retirees who immigrated to the area back then.
This fact is akin to real estate archaeology. But instead of counting tree rings or measuring layers of excavation, we look at home design and tax rolls. These reveal a great deal about local history.
Prior to the snowbird influx of retirees in the mid-20th century, the homes from the 1920s in St. Petersburg showcased the opulence and craftsmanship of the era—albeit in smaller homes. These homes clustered in areas chosen more for their charm than practicality. They seem to scream “second home” for well-off northerners, telling the tale of a much different culture than we see today.
Fast-forward to the early 2000s. Home construction had continued uninterrupted since the craftsman two-story homes of the 1920s, through the bungalows of the 1950s, and into the widespread adoption of ranch-style architecture. The start of the 21st century, however, saw an explosion of luxury living.
Boom
Much of it rode on the coattails of conspicuous consumption, justified in part by changing lifestyles that emphasized in-home entertainment. It was all fueled by a booming housing market—low interest rates and overly easy financing.
Homes were being built with larger rooms, higher ceilings, and more extravagant amenities. Luxury additions included swimming pools with islands and theater rooms equipped with big screens, theater seating, and even rope-lit aisles. Bring your own popcorn.
Conventional wisdom suggested that the move toward more home-centered family time justified gourmet kitchens and expansive floor plans. But beneath the surface, many suspected it was plain old extravagance—lavishness that exceeded all rational bounds. It was a party.
Burst
And today, in the aftermath of the bubble’s burst—an image perhaps best likened to bubble gum splattered across your face—we’re seeing a new trend: multi-generational housing.
Is this shift a sign of national economic embarrassment or the dawning of a new wisdom and wholesomeness?
“Boomerang kids”—young adults aged 19 to 29—are returning home after college in growing numbers. In the last twenty years, that figure has risen from a quarter to a third. Fortunately, most homes include an extra bedroom or even a garage to accommodate them.
“Multigenerational households,” which include members of three generations, are also on the rise, according to the U.S. Census Bureau.
Generation X had already begun to depart from their parents’ overt spending and casual approach to debt, opting for a more value-oriented lifestyle. Instead of burning through $400 in gas on a go-fast boat for a few hours of drinking, they were spending their Saturdays hiking or volunteering.
Has housing evolved in a similar way? Instead of building new, smaller, practical homes, are we simply sharing the large ones we already built or remodeled?
How Much Home Does a Family Need, Anyway?
Bunk Beds
When I was a child, my brother and I shared a bedroom and bunk beds—and we always felt we had it pretty good. We were raised by a single mother who worked two jobs to send us to private school. We learned to appreciate everything, and today, the prevalence of entitlement in the U.S. is horrifying to us. It starts early and, it seems, ends later in life—if at all.
Even that wasn’t too little space, but it might have been smoothed by the warmth that filled the house.
A childhood friend of mine came from a wealthy family in Dania, living in a mansion in the middle of nowhere. His room was on one wing of the house, his mother’s on the other. As a child, he said he would wake up terrified by nightmares and isolation, having to run across the estate to reach his mom. Too much space?
On the other hand, when we recently moved and my daughter’s room wasn’t yet ready, the three of us shared the master bedroom. And honestly—it wasn’t that bad. Long term? Probably not ideal due to privacy and comfort issues.
A close family can be pretty close.
But even the most cherished houseguest can become a thorn in your side, given enough time. Excitement turns to encroachment. Dr. Jekyll becomes Mr. Hyde!
Needs
For the average middle-class Western family, how much space do we really need?
That’s a question being asked—and answered—every day in this new economy. In the U.S., we’re seeing high unemployment across the board—from college grads to downsized professionals and displaced manufacturing workers. So, quite literally, we are coming together for economic reasons.
How much is too little?
My goddaughter may move in with us soon to avoid paying over $6,000 a year in college housing. I’ll have to write these articles from another room—but that’s no problem. As my mother used to say:
“There are people starving in Ethiopia.”
Or, even more poignantly:
“The man with no shoes complained until he met the man with no feet.”
The space we need is something we evaluate daily—if not in our own lives, then through the lens of home and garden television shows.
Moolah
The great thing is, many of us have become more intelligent about quality-of-life alternatives. A smaller home means a smaller electric bill, which can translate into more savings, a monthly night out, or another enriching experience—worth far more than square footage feeding our egos.
Or maybe it means less time at work to support our old housing habit, and more time spent with the kids. As the late U.S. Supreme Court Chief Justice William Rehnquist said (paraphrased):
“If you want to spend time with your young children, you’ve got to do it while they’re young.”
So, the calculus of home size now includes:
- Your finances
- Privacy
- Functionality
- Location and market
- Amenities worth as much or more than the lost economic opportunities
Options
Having a swimming pool costs real money—monthly chlorine, electric pump usage, and more. These costs require either a willing sacrifice (like fewer nights out) or a smarter housing choice (like downsizing to reduce other expenses).
That elusive factor of prestige? Many of us are now willing to shed it. In fact, being conscientious is cool—just look at the popularity of hybrid and smaller cars.
Maybe this is a necessary correction. We’re finally understanding our choices—often because those choices have become limited.
But make no mistake: it’s a kind of growth. And it’s growth we’re lucky to be experiencing.
