Perhaps the top moniker from the 1980s, 1990s and until the mid-2000s was Big is Better, and that spanned the spectrum from the Supersize French fry and soft drink advertisements to the term McMansions for housing. A McMansion was loosely defined as mass-built cookie-cutter suburban home of 3,000 square feet or greater, and more often than not built of lower quality materials and craftsmanship, a mishmash of architectural features, and usually not possessing energy efficiency.
In all fairness, not all 3,000+ square foot homes are McMansions having less-than desirable characteristics. Many of the larger homes today have great architectural design, are energy efficient and were constructed of high-quality materials and craftsmanship.
What is the outlook today for demand of these larger-than-average homes? As interest rates rise, some prospective homebuyers will merely buy a smaller home. A Redfin survey of 4,200 want-to-be homebuyers asked what they would do if residential interest rates went above 5 percent. More than one-fifth of the respondent (21 percent) said they would either buy a smaller home or focus on more affordable areas.
Where are the greatest inventories of 3,000 and up square foot homes today? Once again I invoke the TINSTAANREM axiom — There Is No Such Thing As A National Real Estate Market. Nor is there equal availability of 3,000+ square foot homes listed for sale. To identify markets with the greatest inventory of Mansion-McMansion listings, Realtor.com looked at home listing inventories in the 150 largest U.S. metros. They simply calculated the percentage to 3,000+ square foot listings versus total listing inventory and ranked accordingly.
The top-10 metros with the greatest percentage of 3,000 square foot and up listings are shown in the following table. Only one-metro per state was allowed in the rankings. Had the one-metro per state restriction not been in place, all of the top-five rankings would have been from Utah and Colorado. In addition to the data from Realtor.com, the job growth rate in the prior 12-months ending December 2017 (Metropolitan Statistical Area – MSA) is included. All but one of the top-10 cities in the list, Bridgeport, Connecticut) had job growth rates greater than the 1.41 percent U.S. level for the same time period.
To read the entire Realtor.com article click https://www.realtor.com/news/trends/metros-with-most-mcmansions/
Has there been an impact on Mansion-McMansion listings due to rising interest rates the past year? Realtor.com found an increase in the percentage of listings for 3,000+ square feet homes in more than 70 percent of the 150 largest metros versus 2016. As interest rates persist on an upward trajectory, expect the for-sale Mansion-McMansion inventory to continue to rise.