James Quinn: U.S. Housing Market Driven by Super Sizing Baby Boomers Now Going Bust

The average household size has declined from 3.4 in 1950 to 2.5 today, a 26% reduction. The average household size was 4.6 in 1900. Our average home size has increased from 1,000 sq ft in 1950 to 2,400 sq ft today, a 140% increase. The average square feet per person in the household has increased by 218%.

In 1950, only one percent of homes built had four bedrooms or more, but 39 percent of new homes had at least four bedrooms in 2003. We have one less person per household, but we have added one extra room. Our society has chosen to super size our houses, our vehicles, our TVs, our kitchens, our burgers, our sodas, and our egos. This desire to “keep up with the Joneses” combined with a rise in two-income families convinced millions to pour money into their home and its amenities. This seemed like a great idea when home prices were rising annually at a double digit clip. Most of the money was borrowed, so with home prices down 25% to 50% in many parts of the country the “Joneses” are in a heap of trouble.

Read it all.

Posted in * Economics, Politics, Economy, Housing/Real Estate Market, The Credit Freeze Crisis of Fall 2008/The Recession of 2007--

4 comments on “James Quinn: U.S. Housing Market Driven by Super Sizing Baby Boomers Now Going Bust

  1. Marie Blocher says:

    In the 1000 sq ft homes there were in addition to the three small bedrooms, a living room, an eat-in kitchen and one or one and a half baths, and that’s it.
    [blockquote]In 1950, only one percent of homes built had four bedrooms or more, but 39 percent of new homes had at least four bedrooms in 2003. We have one less person per household, but we have added one extra room.[/blockquote]
    That should read one extra bedroom, plus the formal living room and formal dining room, office, game room, media room, sauna, wine cellar, etc.
    Of course most of the lots are smaller, the two income families don’t have time to maintain the lovely lawn and kids don’t play outside any more so the need isn’t there, and besides playing on the grass is detrimental to the lawn.

  2. Chris says:

    Quinn is long on identifying the past (I agree with him largely) but short about solutions for the future. I mean, what are we to do? Just kill ourselves because the future is so bleak?

    good comments on his article here, nice to see one person point to the secularization of culture and the intractable problems associated with it:

    http://theburningplatform.com/economy/jesus-of-suburbia#comments

  3. Statmann says:

    After (too?) many years in the classroom I accepted the conclusion the the “boomers” was not nearly as smart as they thought they were. They decided to have few (or no) children and NOW are realizing that they may have trouble selling their houses. And their children are convinced that they are smarter than THEIR parents. A most disturbing trend in generational change. Well, both generations wanted CHANGE. Statmann

  4. New Reformation Advocate says:

    Although marred by from rhetorical overkill (e.g., Quinn says all bankers and mortagage loan officers should be sent to jail), I found this article very sobering indeed. Reality can be a harsh teacher, but it’s better than living in denial and captive to the dangerous illusions so many of us desperately want to believe.

    This disturbing article would make for a very stimulating topic for an adult Sunday school class or church home group meeting (or a whole series of such classes or small group meetings).

    None of this catastrophic social disaster would’ve happened if Christians in theis country had heeded the wisdom of Christian financial gurus like Howard Dayton of Crown Ministries, or Dave Ramsey (or the advice of their own grandparents) about the importance of avoiding/getting out of debt and being wise stewards of our assets. And now all of us are going to pay for the follies of my generation, the Boomers whose insatiable greed has largely caused our national economic bust.

    There’s a reason why greed is one of the seven deadly sins. It’s killing our economy, destroying lots of marriages and families, and generally ruining lots of lives. Of course, that dire situation also gives us a golden opportunity for sharing the gospel with huring people, whose lives have fallen apart.

    Lord, have mercy on us all.

    David Handy+