Tuesday, March 07, 2017

Say goodbye to McMansions

We're surrounded by McMansions here in Southern Connecticut. Our real estate market is lousy in general, and now it seems that the market for McMansions in particularly is ailing. Business Insider reports.
The cheaply constructed mansions of old are plummeting in value as homebuyers are more discerning. 
In an article in August 2016, Bloomberg cited data from the real-estate site Trulia that showed that the premiums paid for McMansions have declined significantly in 85 of the country's 100 biggest cities. 
For the study, Trulia defined a McMansion as a home that was built between 2001 and 2007 and that had between 3,000 and 5,000 square feet of space. 
In one example, in Fort Lauderdale, Florida, the extra money that buyers were expected to be willing to pay to own a McMansion fell by 84% from 2012 to 2016. In that same city in 2012, a typical McMansion would be valued at $477,000, about 274% more than the area's other homes. Today, a McMansion would be valued at $611,000, or 190% above the rest of the market. 
Experts told Business Insider that the youngest generations of homebuyers tend to value efficiency more than ever before and feel that McMansions are impractical and wasteful.
 Maybe nobody's buying them because, as the illustration above indicates, they're just stupid.

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