Smaller is the new paradigm
Even though the average size of new homes is, at more than 2,600 square feet, almost 1,000 square feet larger than a home built in 1974, it has actually leveled off and even decreased in recent quarters. Huge homes equal huge expenses and not a lot of residential value. Larger homes cost more to heat and cool, and a big house needs staff to operate. Plus, the local government will see that mansion on the hill as a massive asset to be taxed.
Spend time in a large home, and you’ll discover that by-and-large the owners spend virtually all of their time in a few choice spaces such as the kitchen, informal dining room, den and the bedroom. Most of us can enjoy the same utility with a well-designed home or condo of 2,000 square feet or less. Maybe that’s why people routinely downsize as they age. It doesn’t make much sense retire to a larger house.