Once a status symbol and pillar of suburbia, McMansions are on the way out.
Business Insider reports that the sprawling, ostentatious, and cheaply built homes are no longer worth the investment. Trulia found that premiums have declined for homes between 3,000 and 5,000 square feet built between 2001 and 2007. Experts say that young homebuyers value efficiency and feel that McMansions are impractical.
To cite one example, in Fort Lauderdale, Florida, the extra money that buyers were expected to be willing to pay to own a McMansion fell by 84% from 2012 to 2016. In that same city in 2012, a typical McMansion would be valued at $477,000, about 274% more than the area's other homes. Today, a McMansion would be valued at $611,000, or 190% above the rest of the market.
Americans still want large homes, however. The average new single-family home is nearly 1,000 square feet larger than the new homes of 1980. Buyers still want homes with plenty of bedrooms, and some even want a house big enough to accommodate multigenerational living.