Housing tastes change in United States

Fewer people are now occupying much larger houses

The ownership of a home has long been considered the American Dream. Thanks to low interest rates and favorable income tax deductions, more people in the United States own homes than ever before. This is surprising, given how high the price of houses has become in recent years, but nearly 70% of all Americans now own their own houses. This is viewed as a good thing, as most authorities consider that a nation of homeowners is better for everyone than a nation of transient renters.

What is equally surprising is how the taste in houses is evolving. Over time, the average American home has become larger, has more amenities, and has fewer occupants than in years past. Census data that compares the average house from 1975 and the average house in 2005 shows interesting contrasts. In years past, homeowners usually upgraded to larger homes because the addition of new family members meant that more space was necessary. Couples would often start out in small starter homes that might only have two bedrooms and then move to three, four, or five bedroom homes as their family grew in size. This has changed somewhat, as buyers are now favoring larger houses even if they have few, or no, children.

The average house in 1975 was about 1600 square feet in size and had one and a half bathrooms. The average house in 2004 was more than 2400 square feet in size and had three or four bathrooms. There are several reasons for these changes. Certainly, tastes have changed over time. People remember growing up in smaller, somewhat cramped homes and long for houses with a bit more space. Incomes have increased over the years, and changes in the lending industry have led to a wide variety of loan types that make it easier for people to afford larger houses. Interest rates are lower than they were 30 years ago, and buyers no longer need to come up with down payments in the 20% range. In fact, buyers can often buy a home with no down payment at all.

Another item of note is that while the houses are 50% larger than they were 30 years ago, they tend to have fewer occupants. The average house in 1975 had just under 3 occupants; the average house in 2004 had closer to 2.5.  That means that each person living in a house today has nearly twice the space available to them than occupants 30 years ago.

It remains to be seen how this trend will pay out in coming years. It seems unlikely that houses will continue to grow at the pace of the last three decades. Should we expect to see the average house of 2035 at nearly 5000 square feet and housing only two occupants? Probably not. Still, the census date provides an interesting glimpse into how our tastes in housing have changed over the years. As a rule, Americans are now more comfortable in their homes than ever.