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.

Published: July 21, 1998

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Blanche Evans is the award-winning senior editor of Realty Times, the Internet's leading independent real estate news service. She is featured daily on the Realty Times Video Network in the "Realty Viewpoint" segment. Blanche has been named one of the "25 Most Influential People In Real Estate" by REALTOR Magazine, and has been twice recognized as a "notable." In 2005, she was named "Top Reporter Covering the NAR" by Delahaye-Bacon's. Blanche is a renowned author of five real estate books. Her newest, Bubbles, Booms and Busts: Make Money In Any Real Estate Market, McGraw-Hill, was rave-reviewed by The New York Times. She was also selected from hundreds of real estate experts to contribute to Donald Trump's book, Trump: The Best Real Estate Advice I Ever Received: 100 Top Experts Share Their Strategies, Rutledge Hill Press, and is featured on page 68. Order Now Review - Honors In 2006, Blanche was selected among scores of candidates to author two consumer real estate guidebooks for the National Association of Realtors: The NAR Guide to Home Buying, and The NAR Guide to Home Selling, Wiley & Sons. She is currently planning two new books for the NAR and its members.       Known for her keen insight into real estate industry issues and for her ability to make complex subjects easy to understand, Blanche is a sought-after keynote and continuing education speaker. Real estate organizations from MLSs, to brokerages, to franchisors, to associations hire her to provide up-to-the-minute analysis of real estate industry news and advice on how to improve revenues. Her passionate delivery, peppered with stinging wit, is a huge hit with audiences and fans. Don Klein, CEO Greater Nashville Association of Realtors, Blanche Evans, Richard Courtney, president 2007, GRAR "The GNAR membership meeting last week featured Blanche Evans as the keynote speaker. Her comments and insights resonated extremely well with those in attendance and we have had many requests for copies of her PowerPoint Presentation. She was a terrific part of the membership meeting and convention program!" - Don Klein, CEO Greater Nashville Association of Realtors Coverage from WSMV, Nashville - 8-14-2007 That Interview Guy - Get Inside The Head Of Today's Generation 2007 AE Institute Session - To purchase 2006 AE Institute Session - Parts 1 2 3 4 5 6 7 8 9 HouseValues Mastermind call - Parts 1 2 Blanche's fireside chat with Jeremy Conaway, HAR - Click here. To contact Blanche, email her at . For more articles by Blanche, click here.