The popularity of big houses waned in recent years. Many have thought that these McMansions are boring and a waste of space. Now, big houses are making a comeback, thanks to the coronavirus pandemic.
Before the onset of the COVID-19 pandemic, downsizing has been a growing trend. Many baby boomers are leaving their McMansions to find a more suitable place to age. Still, even millennials are finding it hard to fill in the void. What did they want? Tiny homes that offer easy access to the city's amenities.
However, the health crisis left American families with no choice but to stay home. Now, apartments and condos feel so small, and there is a need for more space and privacy. Bedroom spaces are no longer enough for remote working or online schooling.
Thanks to COVID-19, those boring big houses with spacious yards are on top of home buyers' minds. "The pandemic has been long enough and deep enough that it might bring a change in collective thinking toward bigger homes," an urban planning expert told Realtor.com.
The plummeting mortgage rates also played a role in this renewed interest in large homes. With mortgage rates at record lows, home buying has become more affordable.
Another expert said that homebuyers and homeowners might want an additional 500 to 1,000 square feet (92.9 square meters). The pre-pandemic median size of the existing homes sold was 2,060sq ft (191.38 m²).
Demand for bigger homes does not mean McMansions are back.
Despite the growing need for more space, sprawling McMansions spanning 5,000sq ft (464.52 m²) are not yet on their way back, noted the Realtor.com report. Their steep price and cost of upkeep prevent this comeback.
Millennials, particularly, are likely to settle with a 1,500sq ft (139.35 m²) home. They may also unload their 2,000sq ft (185.81 m²) home in exchange for a 3,000sq ft (278.71 m²). Meanwhile, other homeowners chose to build additions or convert the basement or attic to serve other purposes like office or bedroom.
The need for bigger houses is not only driven by just the need for extra space for office or fitness center. Due to the pandemic, many young adults going back to their nests and aging parents are moving out of nursing homes. Hence, the need for homes large enough to accommodate returning family members.
The report noted that a similar trend happened during the Great Recession, as shown in a 2011 survey. According to the survey by Generation United, the number of multigenerational households increased by more than 10 percent since the onset of the 2007 Great Recession.
Multigenerational living is expected to see a surge as the health crisis lingers. These families would be in a position to buy a bigger home by combining their financial resources. However, once a vaccine is discovered, and America emerges from the health crisis, the demand for bigger homes may again decline, said the Realtor.com report.
