Aspiring home owners are thinking small with their purchase, a trend that is expected to grow in the coming years, according to a new report â€” "The Shifting Nature of U.S. Housing Demand" â€” by the Demand Institute, a division of the U.S. Conference Board.
â€œMany [buyers] will scale back their housing aspirations,â€ according to the report. The report projects that the average size of a new home will go from 2,500 square feet during the housing boom to 2,150 square feet by 2015. That is about the same size of homes in the mid-1990s before the McMansion trend took hold.
The report suggests that other businesses may see a benefit from this expected decrease in square footage in homes, too.
For example, the report suggests that home owners likely will turn to commercial storage spaces more instead of having big basements or attics to store their treasures. Also, more home owners may opt for a gym membership over devoting square footage in their home to a workout room. Also, as kitchens get smaller and have fewer cupboards, home owners may have to make more frequent trips to the grocery store, which could be a perk for the retail industry.
Source: â€œHousingâ€™s Future: Renting and Downsizing,â€ The Wall Street Journal (May 15, 2012)