When one thinks of super large homes, the U.S. usually comes to mind. Not anymore. A recent study claims that the largest homes can now be found in Australia. The moe important question is what are U.S. home buyers looking for instead. Also how are residentail builders and architects responding to them.

First lets put things into perspective. A typica McMansion is nearly three times the size of the average house in the United Kingdom, which is about 800 square feet. The Commonwealth Bank of Australia commissioned a housing study supporting the above claim. The study also indicated that house sizes in the U.S. declined by 10 percent too. Not suprising given the poor economy.

However, there are other factors at play besides the economy. More Americans are changing their spending habits and asking themselves whether they really need all that space to begin with. Most people who build a McMansion don't have large families. They are doing it for other reasons- vanity, keeping up with the Jones', etc. How much space do we really need?

Average home sizes around the word
People in Europe and Asia live in homes or flats (apartments) comparably smaller than their U.S. or Australian counterparts. Take a look.

• Denmark 1,475 square feet
• Greece 1,356f square feet
• Netherlands 1,246 square feet
• Japan 1,310 square feet (Tokyo 980 square feet)
• Hong Kong 585- 1,237 square feet
• New York City Studio Apt. 440 square feet
• U.S. 2,169 square feet
• Australia 2,310 square feet

What are upscale home buyers looking for in the U.S.?
Based on people who I've spoken to in the Washington DC area, the following featurea are desired in a home:

1. Good flow and functionality
2. Top of the line appliances and technology
3. Green in terms of what is used to construct the home
4. Economical to heat and cool
5. Manageable- easy to take care. 

Space and size seem to be taking a backseat to the above items. But that may be a function of where people want to live also. For example, empty nesters are more likely to look closer to a city or urban village. The latter are very common in the Washington DC area- Clarendon and Shirlington in Arlington, VA and Bethesda in Maryland to name a few. That generally means higher prices and a lot less space in return for being close to all those urban amenities.

While people want to live close, they won't settle for mediocre flow or functionality in a home or builder grade appliances.

So What's Replacing the McMansion?
The economy and the above factors have definitely affected the upscale home market. Builders who are accustomed to catering to the McMansion crowd are also rethinking this market. Some like like Sandy Spring Builders in Bethesda, Maryland have formed a strategic alliance with a leader in the modular manufacturing industry, Haven Custom Homes. Together, they created Sandy Spring Class Homes to address the above needs of home buyers who want a relatively large home with green features, but for far less than the money needed to build a custom home. These homes are also delivered in six months instead of a year.

What's the trend?
Our crystal ball says that very large home of the McMansion variety are a thing of the past. People are more conscious about consumption, energy use and are not willing to over extend themselves in a economy that appears stubborn when it comes to creating jobs. Even people who can afford a McMansion may perceive them as a waste of money and resources and not environmentally sound.

We think housing in the suburbs, especially bedroom communities will suffer unless some urban villages sprout up to provide the amenities that people are seeking. Some already have. For example, Reston Town Center is one that comes to mind. Years ago, Reston was definitely living in the sticks, but the town center and its many offices, shops, movies house and restaurants have made it an alternative to driving into the city.

Energy costs are another consideration, especially in the Northeast, Midwest and Washington DC areas. If you heat by natural gas, those bill could be enormous in the future, even though right now natural gas prices have severely declined. Remember though that that natural gas that heats your home is also a favorite fuel to produce electricity. As the economy gets better and the demand for power will increase and so will your heating bills.