{"id":4083,"date":"2024-05-29T07:28:29","date_gmt":"2024-05-29T11:28:29","guid":{"rendered":"https:\/\/www.deeds.com\/articles\/?p=4083"},"modified":"2024-06-16T10:06:15","modified_gmt":"2024-06-16T14:06:15","slug":"builders-meet-buyers-where-they-are-with-smaller-homes","status":"publish","type":"post","link":"https:\/\/www.deeds.com\/articles\/builders-meet-buyers-where-they-are-with-smaller-homes\/","title":{"rendered":"Builders Meet Buyers Where They Are\u2014With Smaller Homes"},"content":{"rendered":"\n
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At Elm Trails, a subdivision of San Antonio, the giant developer Lennar sells compact homes for just $150K or so. The houses themselves take up less than 700 square feet. They\u2019re placed on 20-foot lots with little backyards and no garages. The least expensive offering is a new, 350-square-foot house for $130K. So far, 55 buyers have opted in.<\/p>\n\n\n\n

Why is this so important? Because super-small homes are part of a growing \u2014 make that shrinking \u2014 trend.<\/p>\n\n\n\n

The quest to make houses affordable is \u201cchanging notions of what a middle-class life looks like,\u201d reports The New York Times. <\/em>Today\u2019s generation of home buyers wants \u201cless carbon and clutter than the standard two-car suburb,\u201d the Times<\/em> explains.<\/p>\n\n\n\n\n\n\n\n

Even Regular Homes Are Getting Smaller<\/h2>\n\n\n\n

Across the country, new homes now average just under 2,200 feet. That makes this generation\u2019s typical first home about 4% smaller than the last generation\u2019s.<\/p>\n\n\n\n

And no wonder. In recent years, the cost of homes and all that go into making them have skyrocketed. There\u2019s been a terrible lack of \u201cstarter homes\u201d that first-time buyers need.<\/p>\n\n\n\n

Making matters worse for buyers, mortgage interest rates have shot up.<\/p>\n\n\n\n

Builders soon found themselves frustrated by the slow market. They sought ways to control costs: fewer closets, cabinets, and windows. Narrower doors. Less roomy rooms.<\/p>\n\n\n\n

Could a minimalist approach to building attract renters and turn them into home buyers?<\/p>\n\n\n\n

Accessibly Priced Homes Rely on Zoning Support<\/h2>\n\n\n\n

Bend, Oregon is another expensive metro area. Need a home there for under $300K? Good luck. Now, Oregon-based Hayden Homes offers houses in the Cinder Butte community in Redmond, where buyers can check out 600-square-foot houses. Hayden\u2019s success there has led the company to offer small homes beyond the Bend area. Many of the buyers are, indeed, people who want to stop renting.<\/p>\n\n\n\n

Hayden is riding a policy wave. Oregon has relaxed the zoning rules that long kept subdivisions filled with freestanding homes only.<\/p>\n\n\n\n

And so, companies like Hayden found a budding niche market that\u2019s a serious selling opportunity. It\u2019s similar to the opportunity that Lennar uncovered when its tiny homes near San Antonio\u2019s East Side sold like hotcakes, as the San Antonio Business Journal<\/em><\/a> reported.<\/p>\n\n\n\n

Granted, the homes get mixed reviews from potential buyers out there. One commenter, going by the screen name Johnny Appleseed, expressed a typical criticism:<\/p>\n\n\n\n

Unacceptably high priced for the size of home and patch of grass. $150k should buy a 1,200 square foot house, with a basement and a 500 square foot attached garage, on a 1\/2-acre of deeded land.<\/em><\/p>\n\n\n\n

What do you think of these homes? The San Antonio Business Journal<\/em> provides a helpful slideshow.  But whether you like the homes or hate them, there\u2019s a clear message in Lennar\u2019s success in filling them. Even the big builders are testing the potential market for tiny homes. It appears to be working.<\/p>\n\n\n\n

Here Are Just Some of the Small Home Builders <\/h2>\n\n\n\n
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The New York Times<\/em>, Tech Crunch<\/em>, and Business Insider<\/em><\/a> have all covered the rise of small-home builders. If you\u2019re interested in acquiring a house with a small footprint, here are just a few of the many interesting companies you might want to follow:<\/p>\n\n\n\n