Simplicity

The technical definition of a McMansion, which I just learned actually exists, is a home over 3,000 square feet. That honestly doesn't sound like a McMansion to me, but ok, I'll go with it since the median home size in the United States is something less than that -- somewhere around 2,000 SF according to the National Association of Realtors. That's up from about 1,400 SF in the early 1970s.


However, over the past few years, more people have looked at downsizing as a positive option. It's still not a norm, but for a variety of reasons, it's gaining traction. I talk to people every week who are considering shaving square footage for a variety of reasons. Some of the most common ones I see:

Living more simply. People are tired of taking care of a big house and realize there are rooms they don't even use or walk through for weeks at a time. Cleaning and paying for space you don't use? We probably all do this to some small extent, but when it becomes noticeable, maybe it's time to ask yourself why you're still there.

Smaller environmental footprint. Awareness of environmental impacts is on the rise and many people are looking for ways to reduce their carbon footprint. Housing contributes well over half of most our footprints (calculate yours here) and reducing energy costs is generally easier with a smaller house.

Financial drivers. Possibly spurred by a job loss or just a result of a downward economy, people who are looking to cut monthly expenses start with the big ones. Housing costs typically account for a significant portion of cash outflow, and downsizing can dramatically reduce the pinch.

More career flexibility. I guess this is financial as well, but for different reasons. More people have looked at this economic downturn as an opportunity to do something different with their careers, even if not forced to. The possibility of changing careers and following what might be a long-time dream is more feasible if you have some financial flexibility to support yourself in the interim. Downsizing the payment opens up cash as salary backup if a new career is just getting going.

Get rid of debt altogether. Some look at it as an opportunity to take the equity they have built in their home and buy something smaller for cash simply to not have the burden any longer.

Whatever the reason, it's happening more. Is it something you've considered?