By Richard Mize, The Oklahoman, Oklahoma City
Apr. 3--The recession has put the squeeze not only on the homebuilding business, but on the houses themselves.
New homes are smaller on average. McMansions are out.
Edmond builder Caleb McCaleb estimated that fully 80 percent of the houses being built in the Oklahoma City area now will sell for $250,000 or less. Before the downturn, he estimated, half sold for more than $250,000 and half for less.
Mark Dale of Oklahoma City's Carriage Homes and some others who built on the upper end of the market have turned to remodeling upscale homes.
Dale, who is president of the Central Oklahoma Home Builders Association, said he didn't expect much increase in the demand for high-end homes as long as many potential buyers face uncertainty.
He pointed to physicians, whose worlds are in flux because of health care reform, and energy executives, whose fortunes are tied to efforts to legislate or regulate carbon emissions and to an Environmental Protect Agency that is flexing its muscles.
McCaleb got out of upscale building when demand -- and the "jumbo" loans helping fuel it -- dried up. He was left with several homes for sale at the upper end and only recently sold them. "I had to take trades," he said, meaning he agreed to buy smaller homes from some customers to enable them to buy his.
In general, though, "frugal is the new cool," he said, although even people downsizing still insist on a few "jewel box" features, say, wainscoting in an entry, or a hardwood floor. McCaleb is concentrating now on Arbor Creek, a neighborhood of bungalows in east Edmond.
The first phase of 30 homes sold out, he said, and work on phase two has begun.
Urbana series Jeff Click Homes in Oklahoma City has added the Urbana series, a line of smaller homes with names in keeping with Click's biblically themed plan names: Neuma, 1,465 square feet; Cielo, 1,579 square feet; Shalom, 1,670 square feet; and Trinity, 1,643 square feet.
Click said buyers are thinking of more than just the house nowadays -- they're considering the full cost of home ownership, which includes furnishings, energy costs and other expenses in addition to a mortgage payment.
But just because buyers are scaling down on size doesn't mean they're skimping on amenities, he said.
"We've had tremendous success in catering to those who like the more modern, contemporary style typically only found in more urban, big-city markets. However, before the Urbana series we were missing opportunities in the $150,000-$180,000 price point, which is a difficult price point to build a home with both quality and character," he said.
Click said rising energy costs have more people sizing up a home's energy efficiency.
He said he's meeting that by building homes to meet Oklahoma Gas and Electric Co.'s guidelines.
"We (are) focusing on the reduction of costly square footage through efficient use of space, rather than cutting quality or amenities," he said.
"In fact, in many regards, these smaller homes include some qualitative improvements over our larger homes due to the strict energy standards they have to meet to qualify for OG&E's Positive Energy/Energy Star Certification."
Environmentally conscious The greener a home is the better, McCaleb said.
"People are more environmentally conscious and it is greener to own a smaller carbon footprint home that is designed with the latest in energy-efficient products. And by the way, that translates into very low monthly energy bills for the owners," he said.
"I think the expression 'less is more' is very relevant today. New-home buyers are telling us they still want the high-end finishes, but they do not want the formal rooms and other not commonly used rooms anymore. And fewer rooms equal less square footage which equals a lower price for the home. And today frugal is the new cool."
McCaleb said he thinks this recession will have a longer-lasting effect on average home sizes than others did.
"You always see home square footages dive down in a recession and then they return to even larger when it ends. I believe the aging baby boomers, myself included, saw their retirement accounts butchered the last several years and have a new reality of the future -- still very positive, but more cautious," he said.
Size isn't everything anymore, especially for younger buyers, he said.
"Great design can make up for smaller square footage. We have found that eliminating the formal rooms, fewer hallways, fewer walls and long diagonal views across the home can really make a home shine," McCaleb said. "There needs to be greater interaction between the family gathering areas. And a natural flow from the inside to the outdoor living space is an easy way to create more livable area."
-----
To see more of The Oklahoman, or to subscribe to the newspaper, go to http://www.newsok.com.
Copyright (c) 2010, The Oklahoman, Oklahoma City
Distributed by McClatchy-Tribune Information Services.
For reprints, email tmsreprints@permissionsgroup.com, call 800-374-7985 or 847-635-6550, send a fax to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave., Suite 303, Glenview, IL 60025, USA.
A service of YellowBrix, Inc.