Atlanta-based home builder John Wieland has been touring a four-state area sleeping on a mattress on the floor of unsold homes for 26 days now. He vows to keep at it until he has sold 101 of the empty houses in his company's inventory. It's an interesting PR gimmick that I hope pays off for him.
Wieland has invested a lot in the Southeast and has built some wonderful homes and communities here over the past 39 years. But like most builders, he finds himself right smack in the middle of a builder's worst nightmare - too many big homes sitting empty and too few people with the credit or courage to buy them.
He says he has learned a lot on his journey, but the most important thing is that future homebuilding has to change in order for his company to survive. Low prices and interest rates aren't enough to move the needle much.
Wieland is one of those builders who is caught in an interesting conundrum. For years his company has been developing subdivisions full of large homes with interesting architectural details, the latest in kitchen appliances and huge media rooms. After all, his company, like so many others, knew boomers weren't necessarily downsizing. Many wanted nice, new homes with all the amenities they couldn't afford when the kids were home.
What a difference a year and a tumbling Dow make!
Now, we're seeing a shift. Boomers and seniors are actually seeking smaller, more efficient homes with open floor plans, according to the National Association of Home Builders. As boomers and seniors sweat over having enough money to live comfortably in retirement, many are choosing to reverse the trend of building lavish homes and now are seeking affordable, energy-efficient ones. In just the past year, the average square footage of new homes has dropped by 250-300 square feet.
This new trend is causing developers like Del Webb and other active adult community developers to rethink their plans. Look for bathtubs to give way to flat-floor showers (and the space used for storage) and dining rooms and media rooms disappear altogether.
Researchers at AARP tell us as many as 80 percent of boomers will choose to age in place, perhaps renovating their homes specifically so they don't have to buy a new one. In fact, just last week, the AARP reported that eight out of 10 adults are cutting back on spending and three out of four are doing so specifically to save for retirement.
Look for this housing trend to have an impact in several other ways. Home technology will continue to get smaller and more efficient; furniture size will likely trend back down after years of going the "bigger is better" route, and even cars will likely shrink not only to be more efficient, but to fit smaller garages.
So, once again, a recession will drive innovation - probably for the better. Meanwhile, maybe those huge expensive vacant homes would be the answer to families that are ready to create multi-generation households that can share in the expense and upkeep.
