Lending Club Blog

Smaller Houses for Lower Costs

Along with the downsizing in the economy, downsizing is occurring in many aspects of our lives. Real estate is no exception. Average new home sizes have been increasing for as long as most of us can remember, but finally saw a significant decline in the last quarter.

According to USA Today’s article New Homes Being Built Smaller, new homes started in the third quarter of 2008 averaged 2,438 square feet, compared to 2,629 the quarter before. Slight decreases had occurred in the past, but none as great as this latest reduction. As consumers retreat to more frugal lifestyles it’s only natural that they would look to reduce the cost of one of their largest expenses, their home.

Smaller homes are obviously less expensive to build, but they are also less expensive to maintain. This goes beyond just the lower property taxes and mortgage interest paid as a result of the lower cost, though those savings can be significant. Other costs that are lower include heating and cooling, decorating, cleaning, and general maintenance. Even homeowners staying in their existing homes are looking to downsize by living in less of their space. In homes with multi-zone heating, living in only those areas within one zone may lower heating bills. Similarly, by not using extra space regularly, you can reduce the cleaning and maintenance required.

Having extra space is great, but too much extra space facilitates waste. Having a spare bedroom or two may allow you to stay in your current home longer as your family grows, but once you’re done having more kids, extra bedrooms are really just wasted space. With home prices faltering of late, buying a larger home in the hopes of making a larger return on investment in the future also seems less wise. Having a smaller home allows you to focus on making the space you do have as nice as possible and may result in a nicer home.

When money is tight, waste is the enemy. For many reasons, a larger home is now seen as a negative. As the economy improves, we may eventually see larger homes coming back in vogue, but due to the long-term nature of real estate investments, it may take a while before that occurs. In the meantime, living in smaller homes will be a constant reminder to focus on necessities and live as efficiently as possible.

How large a home do you live in? How many people share that space?

Tuesday, February 24th, 2009 at 6:23 am

Comments (0)


Welcome Home

Lending Club named #5 on Forbes’ Most Promising Companies List

Get ready for tax season with Lending Club’s Tax Form Guide

New Adjusted Return Metric

See more
Lending Club Awards
  • Archives z

Recent Posts

Growing Your Business By Using Capital

Smart small business owners don’t wait to consider borrowing… Read More »
August 19, 2016

9 Reasons to Open an IRA

Retirement: a word that often comes with many connotations.… Read More »
August 5, 2016

6 Reasons to Get a Personal Loan

While it would be great if we all had enough… Read More »
July 29, 2016

Lending Club and the Marketplace Model

Some of our investors have observed the funding environment… Read More »
July 28, 2016

A Recap: Credit Strength on the Lending Club Platform

We are proud of our… Read More »
July 14, 2016

A Message to Investors from our President and Acting CEO

Today, our President and acting… Read More »
May 19, 2016

Lending Club Receives Tribeca Disruptive Innovation Award

Disruptive innovation comes in many… Read More »
April 29, 2016

Lending Club Business Financing Review

One of the biggest challenges of owning a small… Read More »
April 27, 2016

Lending Club partners with Funding Circle and Prosper to launch Marketplace Lending Association

Read More »
April 7, 2016

Lending Club Welcomes Maryland and North Dakota Investors!

We’re now open to retail… Read More »
February 23, 2016


We went public today!

Ringing the bell this morning at the New York… Read More »
December 11, 2014

New and Improved Statistics Page

We recently redesigned our Loan Statistics page to make… Read More »
November 13, 2014

Lending Club Honored with Economist Innovation Award

This month I was honored… Read More »
October 15, 2014

Welcome Vermont Investors!

Today, we’re thrilled to welcome residents of the state… Read More »
September 4, 2014

We filed to go public today

We filed a registration statement with the SEC today… Read More »
August 27, 2014

Our Billion Dollar Quarter

We’re excited to announce  that we’ve facilitated over $5… Read More »
July 8, 2014

Is Lending Club Available in My State?

Is Lending Club available in my state? That is… Read More »
July 7, 2014

Lending Club Joins Senator Cory Booker to Discuss Improving Access to Capital for Small Businesses

Read More »
June 20, 2014

Lending Club Named a CNBC Top 50 Disruptor for a Second Year

For the second year in… Read More »
June 17, 2014

PRIME is now Automated Investing

Lending Club is excited to announce that PRIME has… Read More »
May 14, 2014
View All w