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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: Don Green who wrote (14544)	10/27/2003 12:29:54 AM
From: JBTFD	Read Replies (1) \| Respond to of 306849

The reason the houses are getting bigger is due to financing rules. To get construction financing the land can only be a certain percentage of the final value of the property as it will be sold. So as land values rise, the builders have to build these huge homes on the land in order to sell it at a price that keeps the land value at a low enough percentage.

To: Don Green who wrote (14544)	10/27/2003 8:34:44 AM
From: Tradelite	Read Replies (2) \| Respond to of 306849

<<why do homes keep getting bigger, when families are getting smaller?>> Not everyone needs that big SUV they're driving, either. Today's soccer parent drives a van big enough to transport the entire team, but the only person in the back seat is Junior. And the lucky little fella's seat comes fully equipped with its own cup-holder, too. Amazing but true that many buyers now turn up their noses at older homes with smaller rooms on superb lots in good locations, in favor of less-solidly-built homes on inferior lots located miles outside of town, where everything is bright and shiny and bigger. Rising expectations, rising affluence, reluctance to buy anything that can't be shown off proudly and be used to upstage their like-minded friends, easy availability of credit to finance their high-flown tastes--probably more reasons, too. How many people actually mow their own lawns anymore? Yards might soon become obsolete. Kids have no time to play in yards, anyway--they're too busy talking on their cell phones. Everything is just.....different nowadays. <<GG>>