Recent reports suggest that high gas prices coupled with the end of summertime clearances are putting the brakes on auto sales, particularly larger vehicles such as SUVs and pickups.

Less than one-third of Ford's sales are in cars -- they've built their reputation with SUVs and trucks. Now they are looking at redesigning their offerings to attract buyers back to the showrooms.

Yet some sedans and compacts rose in sales, suggesting that car buyers are thinking smaller.

Could there be a message here for the housing industry?

With back-to-back hurricanes hitting the oil and gas industries in the gulf, recovery efforts are intense. This week, nearly 93 percent of oil production and 75 percent of gas production was still offline. That's nearly a quarter of the nation's domestic oil production. Recovery is taking place very slowly, and with the hurricane season not over until the end of November and with strong storms predicted for at least the next ten years, more disruption to oil and gas supplies could occur.

Winter weather is on the way, and the nation is bracing for record high energy costs. Homeowners and renters will be watching their energy costs more closely than ever as we all share the shortage in supplies. The government has already warned the public to expect as much as a 70 percent increase in their heating bills this winter.

Meanwhile, rising interest rates are fast approaching six percent, causing some pundits to wonder what's in store for the housing industry. Will these factors change the way Americans buy houses?

It's well known that tastes in homes change over the years, and current conditions could signal a trend toward downsizing. Just as SUV's were the rage in automobiles for the expansive '90s, the oughts may prove to be the era of eco-friendly hybrids and other smaller vehicles.

That could be a harbinger of things to come in housing. What's popular today may be a selling liability tomorrow. Think orange shag carpet and psychedelic wallpaper. Over the last few decades, homes have supersized. In 1970, the average home was 1,500 square feet, but by mid-2004, detached homes had reached 2,400 square feet.

Eight-foot ceilings were replaced with two-story entries and 9-foot ceilings have become the building norm. Formica was upgraded to granite in most homes, and carpet was replaced by hardwood or concrete floors. Even more modest homes seem to be outfitted with jetted tubs and other luxuries average homeowners once could only dream of.

The building industry is intensely interested to know if it's building the right products to sell. The National Association of Home Builders conducted a survey to find out whether size or amenities matter more. In just three short years, it was found that attitudes have changed substantially.

In 2000, the association surveyed thousands of homeowners and asked them if they would prefer more space with fewer amenities, or less space with more bells and whistles. Fifty-one percent said they would take size over substance. When the survey was repeated in 2004, sixty-three percent of 2,900 homeowners said they would prefer less space and better accoutrements. The association believes that in 2006, the number of homeowners wanting style over size will be even greater. They believe energy and other maintenance costs will increasingly play a role in housing design.

That's excellent news for homeowners selling older modestly sized-homes such as the easy-to-remodel mid-century Ranch-style home, or the small-yard garden-style, zero-lot-line or patio homes of the '80s. Just make sure your listing is attractively updated for today's luxury-loving homebuyer. And if you've got a McMansion to sell? There's still plenty of market left -- make sure the seller has the latest energy-efficient features to boast about to buyers.

Published: October 6, 2005

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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.