Smaller Homes - Sensible or Stingy?
It is strange to think that in the fifties houses were considered 'plush' at 1,000 square feet and then we whooped all the way up to an average home of 2,500 square feet before we started the current trend back downwards.
The fact that most homes have become larger and more expensive has pushed many first time buyers out of the market.
Local builders have noticed that a void is forming in the small homes market.
Most new homes boast substantial square footage and cost substantial dollars.
It is a recognized fact that the average first time buyer cannot buy a newly built single family home.
First time buyers will usually have to buy an existing home and become established in the realty market before buying a brand new home.
This entails accruing equity in the home, perhaps renovating it, and then selling it to move up the property ladder.
What brings this new awareness that small homes are okay? Is it the sustainable living guilt, or is it that so many baby boomers are out there looking for smaller homes to retire to? Apparently it is neither, it is simply a question of finance.
The St.
Petersburg Times reported a Tampa Bay Builders Association spokesman saying that builders will still be building super-sized homes but there will be more of the smaller ones being built as well.
This change in thinking is not seen as a fad by builders, but it is one way of bringing down the price of a house.
Lower prices in the housing market are more popular with prospective buyers than such luxuries as king size bathrooms and extra large rooms.
People are economizing when buying a new home, say the builders.
For instance, they often choose not to install granite counter tops, knowing that they can do it themselves later.
An average 'shrink back' is from 2,200 square feet to 1800 square feet.
Some two bedroom houses are actually being built with the square footage not much over 1,000.
The cost of the raw land is also a factor in the price of the house.
If the home is smaller and two units can be built on one plot of land instead of one unit, then obviously the price of the house will be lower.
Is this sensible or stingy? Building smaller homes in the Florida area could also be one way of keeping the younger generation active there.
There have been extensive studies of house prices and affordability for young people carried out recently; they showed that young people will often leave areas that only offer high cost homes.
In some cities, such as Boston , young people are quoted as 'moving away in droves' because of the high house prices.
This is costing Boston the human capital needed for future growth and economic expansion.
The news in Florida that the government is trying to encourage more first time buyers will hopefully mean that Florida will avoid the same pitfall.
By offering financial incentives to first time buyers they are ensuring that the younger generation can still flourish in Florida.
This will expand the younger segment of Florida society and consequently will also be likely to increase the permanent population.
In the light of these facts, it would be financially viable for builders in Florida to produce some smaller homes.
Especially since the first time buyer program is designed to help those people who may have only a modest income.
(There is a ceiling on the qualifying monthly salary.
) Income is not rigid, it is determined by the number of individuals living in the house; details can be found on the web under Florida's First Time Buyer Program and your real estate agent will also be fully versed in these incentives.
It may be a surprising turn around if the small homes being built go like hot cakes! There are many people who would like to downsize, but still want the luxury of a new home.
These include groups such as baby boomers and single parent families.
If you don't want to miss out, go to your real estate agent early, and ask which builders and where will be building these smaller homes.
When it comes to brand new homes, you can buy it before it is built.
This way you will beat the rush and therefore be assured of a sparkling new home.
The fact that most homes have become larger and more expensive has pushed many first time buyers out of the market.
Local builders have noticed that a void is forming in the small homes market.
Most new homes boast substantial square footage and cost substantial dollars.
It is a recognized fact that the average first time buyer cannot buy a newly built single family home.
First time buyers will usually have to buy an existing home and become established in the realty market before buying a brand new home.
This entails accruing equity in the home, perhaps renovating it, and then selling it to move up the property ladder.
What brings this new awareness that small homes are okay? Is it the sustainable living guilt, or is it that so many baby boomers are out there looking for smaller homes to retire to? Apparently it is neither, it is simply a question of finance.
The St.
Petersburg Times reported a Tampa Bay Builders Association spokesman saying that builders will still be building super-sized homes but there will be more of the smaller ones being built as well.
This change in thinking is not seen as a fad by builders, but it is one way of bringing down the price of a house.
Lower prices in the housing market are more popular with prospective buyers than such luxuries as king size bathrooms and extra large rooms.
People are economizing when buying a new home, say the builders.
For instance, they often choose not to install granite counter tops, knowing that they can do it themselves later.
An average 'shrink back' is from 2,200 square feet to 1800 square feet.
Some two bedroom houses are actually being built with the square footage not much over 1,000.
The cost of the raw land is also a factor in the price of the house.
If the home is smaller and two units can be built on one plot of land instead of one unit, then obviously the price of the house will be lower.
Is this sensible or stingy? Building smaller homes in the Florida area could also be one way of keeping the younger generation active there.
There have been extensive studies of house prices and affordability for young people carried out recently; they showed that young people will often leave areas that only offer high cost homes.
In some cities, such as Boston , young people are quoted as 'moving away in droves' because of the high house prices.
This is costing Boston the human capital needed for future growth and economic expansion.
The news in Florida that the government is trying to encourage more first time buyers will hopefully mean that Florida will avoid the same pitfall.
By offering financial incentives to first time buyers they are ensuring that the younger generation can still flourish in Florida.
This will expand the younger segment of Florida society and consequently will also be likely to increase the permanent population.
In the light of these facts, it would be financially viable for builders in Florida to produce some smaller homes.
Especially since the first time buyer program is designed to help those people who may have only a modest income.
(There is a ceiling on the qualifying monthly salary.
) Income is not rigid, it is determined by the number of individuals living in the house; details can be found on the web under Florida's First Time Buyer Program and your real estate agent will also be fully versed in these incentives.
It may be a surprising turn around if the small homes being built go like hot cakes! There are many people who would like to downsize, but still want the luxury of a new home.
These include groups such as baby boomers and single parent families.
If you don't want to miss out, go to your real estate agent early, and ask which builders and where will be building these smaller homes.
When it comes to brand new homes, you can buy it before it is built.
This way you will beat the rush and therefore be assured of a sparkling new home.