How Much is Enough...Space? Part Three of a Series

I promise that we will eventually get to the topic that most people are interested in hearing about from their financial advisor (that would be money). But in this third post in a series on how much is enough, I’d like to talk about space. Not outer space, but the space we occupy. As we enter the final months of our home renovation, I’ve been alternately questioning and reaffirming our “new” space.

First, who does a full home renovation these days without adding space? Especially when said home is less than 2,000 square feet and plenty of experts said we should just tear down or walk away. How many new homes are built to this size and is there even a market for them? 

Well, as it turns out the lack of housing inventory at affordable prices has increased demand for smaller houses. This is reversing a trend set during the pandemic when people were clamoring for larger homes with plenty of space indoors and outdoors to survive the global call to stay home.¹

Since all this housing space was purchased at low, low interest rates, there wasn’t much left for entry-level home buyers. Once interest rates pushed even higher, the cost of buying became even further out of reach. Home builders, who are also impacted by higher borrowing costs, seem to be acknowledging the need to provide an option for millennials looking to buy their first home. A recent article in the Washington Post stated that builders are now constructing homes that are four percent smaller than in previous years, lowering square footage to 2,179.² This, in turn, lowers costs. But there are some that think this model is not sustainable. In fact, even smaller homes in hot real estate markets are not affordable for most people. We can’t build our way out of it, apparently.

But I digress. My point is that maybe we didn’t need all those spacious homes to begin with. Consider this: my family of three adults and two dogs are living in a rental that is 2,356 square feet above ground. And that isn’t even considered a large house these days. It has three full floors of living space. But we are consistently “living” in the kitchen/TV space which probably represents no more than 600 square feet. Yeah, there are bedrooms upstairs where we sleep, and I use the downstairs as a workout space. But the amount of true space we need to live in is considerably less than the full 2,356 square feet available.

Back when we bought our house, I read a book entitled, The Not So Big House: A Blueprint for the Way We Really Live, by Sarah Susanka and Kira Obolensky. It’s been a while since I referenced it, but what I remember most was the suggestion that you really live in a house for a while and make note of the spaces you use most frequently. It is those spaces where you need to be most thoughtful in designing for your lifestyle. That doesn’t necessarily mean going bigger. Having lived in our home for more than 24 years, I think I can say that we use the kitchen and the living room more than any other rooms. So, those spaces are getting most of our attention so that they are either more efficient or more livable. 

It is going to be interesting moving back into our house. While everything is going to be different, not much has changed in terms of the layout. I’m okay with that, because I know how it works for our family. We may not be adding a lot of value from a real estate standpoint. Though who knows? Maybe smaller houses will trend and ours will be worth a lot more once all is said and done. Or maybe my neighbors will see that they don’t need to go big to go home.

Sources:

¹ Orihuela, C. (2024, May 13). From the 1920s to the 2020s, cash-strapped homebuyers turn to smaller homes. Marketplace.    https://www.marketplace.org/2024/05/13/from-the-1920s-to-the-2020s-cash-strapped-homebuyers-turn-to-smaller-homes/ 
² How market forces are reshaping the American home. (2024, March 10). Washington Post.  https://www.washingtonpost.com/business/2024/03/10/smaller-new-houses-afforable/

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