Today’s question comes from first-time homebuyers Justin and Allison who want to know, “Why are smaller homes more expensive per square foot than larger homes?”
Well, Allison and Justin, this is a great question. The trends here in Memphis have shifted since the market crash in 2008. Smaller homes are selling faster and enjoy more appreciation than many of their larger competitors. Here’s why that is.
Today’s buyers are much more conscious about the area where they’d like to live. Living in the hottest neighborhoods or best school systems have taken priority over size concerns, especially if they don’t see value in larger-than-needed rooms.
In addition, buyers today are more in-tune with the additional cost of larger homes. The cost of routine maintenance is less for a smaller home, and the cost of updating or remodeling for a smaller home is far less than a larger one.
However, the single-most overriding trend among young buyers today is minimalism. There are many who now see living in a smaller, nicer home as a lifestyle statement.
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