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McMansion Popularity Surging for First Time Since Housing Bubble

Back in the mid-2000s, McMansions, or homes that were larger than 3,000 square feet, helped fuel the housing bubble as people started building bigger and better homes. Coupled with subprime mortgages, banks couldn’t keep up when people stopped paying their mortgages, and the market collapsed.

Now, according to Newsweek, the popularity of McMansions is surging once more, and the median price of McMansions is approaching what it once was in 2007.

According to information put out by Zillow, the median McMansion price in the year 2000 was $330.5 thousand. That number climbed to $519.5 thousand before the collapse in 2007. Since then, home prices have rebounded to a median $482.3 thousand as of May 2017. Compare those figures to the median value of all other homes in the year 2000—$119.8 thousand—and the May 2017 figure of $199.2 thousand, which is at an all-time high.

McMansions have a contagious effect on neighborhoods, according to a report put out by Clement Bellet of the CEP, and which ultimately causes a snowball: once a McMansion moves into a neighborhood, it fuels more people to upgrade. The article estimates that there are 794,000 large homes that have been built in May.  Read More
 

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