MAYBE WE NEED SMALLER HOUSES!

         With all the hub-bub about tax reform lately, one issue that has some up in arms is capping the deduction for mortgage interest to $500,000. This really got me to thinking about the whole "Home Size" issue.

        When I started selling real estate back in the late 1970's the average new home was give or take around 1,200 square feet. By the early 1980's it had gone up to the 2,000 sq. ft. range. Then as time went on homes got bigger while family size diminished. 

         There were homes built after WWII that were less than a 1,000 sq. ft. and were occupied by a family of 5 or more. A lot of the monster homes built later were occupied by an average of 4 or less. A lot of people I know today are living in homes that only a third or less used daily. And, of the unused area, family coming home to visit is a rarity. 

        I'm not a big global warming advocate, but, it seems like we have and are becoming "Gluttons" not only in the size of our homes, but, in the amount of energy we use in heating and cooling these homes.

         And, our tax laws are already allowing this constant hike in size with deductions in interest and property taxes, and paying capital gains if we do try to down size unless it's your last purchase. Along with just plain ego for some and currently very low interest rates the trend will no doubt continue.

          Maybe we should think about another way to safely put our money somewhere besides our home. It seems like the way we are headed, the day will come for another big "real estate bubble burst" or maybe we're heading like in the days of Merry Old England when the huge castles could no longer be maintained and taxes afforded.  

         Let's hope that the day of the "Perfect Storm" never comes. A spike in interest rates, big increase in utility costs and/or a down-turn in population growth. Also, maybe it would be cheaper to put your visiting family up in a hotel?