| July 21, 1998 |
![]() According to the National Association of Home Builders (NAHB), approximately 14 percent of all new homes built in 1996 covered at least 3,000 square feet of space. Ten years ago, the NAHB viewed large homes as residences that covered at least 2,400 square feet of space. And only 18 percent of the new homes measured 2,400 square feet in 1986. What is driving the need for more space? Boomers, the economy and the culture. Cocooning It began with Faith Popcorn's early '90s notion of "cocooning" in which the home is a sanctuary from the stress of the outside world. Master suites are larger, and are now routinely situated away from the rest of the household. Children are less likely to share a room and have their own space, making family gathering spaces more important. Entertainment spaces are larger, with some areas devoted exclusively to media - oversized video and audio components. Kitchens are larger because couples are cooking together and use food preparation time to talk about their day. One may have the sphere of preparation while the other has clean-up duties. The popularity of convenience appliances such as double ovens, convection ovens, microwaves, trash compactors, hot water dispensers and others also call for more space in the kitchen. The Home Office But then down-sizing became a national business trend and many people, unable to equal their salaries and benefits at competitors' doors, responded by "outsourcing" their talents as entrepreneurs. Companies found they could use the outsource on an as-needed basis, saving money and benefits. The trend caught on and gradually companies began to include flexible hours and job share programs with its employees who preferred to work at home. The cost saving measure was the first factor to drive the home office phenomenon. Then computer prices began to drop and dramatically, making it possible for almost anyone to own a computer with enough power to perform bookkeeping and tax services, run games and surf the Internet. In 1997, computers dropped to under $1000 for the first time and continue to add features and power under this low ceiling, making the virtual home office take over the dining room table, the corners of bedrooms and garage parking spaces. A space devoted to the computer, bill paying, and other home planning makes more sense for most consumers. The Baby Boomer The first generation of Baby Boomers, the largest demographic in history, is turning 50. They have money and are accustomed to indulging themselves as evidenced by the increase in luxury consumption from 1995 to 1996 by more than 20%. They want to show they have arrived and are moving into larger homes. The (NAHB) considers the age of 45-64 the peak custom home buying years. Because older homes typically do not have the space of new homes, boomers are more likely to consider building their dream homes. Boomers also have others to consider. They are the Sandwich Generation - raising children and caring for an older parent in the home. They are also subject to the Brady Bunch effect - and are housing blended families due to high numbers of divorce (half of U.S. marriages) and remarriages. Baby boomers are also more likely to stay in their dream home, once they have found it. In a recent survey by Professional Builder most respondents had already been in their homes for 11 years, four years over the national average, and plan to stay in their next home (the dream home) an average of 17 years. Flex Space The most important feature in new homes, according to builders, is flex space. This space dovetails with the idea that homebuyers will stay in their homes for longer periods, so they want an area that can grow with the family. The same space may start out as a nursery, or a guest bedroom and evolve into a home office or library or hobby room depending on the needs of the family. Although homebuyers wanting more space is the most often quoted reason for buying a new or existing home, it is how the space is going to be used that is significant. |
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