Big plots of land dotted with similarly styled homes was once the cornerstone of the American homeowner’s dream. Dubbed McMansions, these big, box-like homes were hugely popular between 2001 and 2007 and were roughly 1.5 to 2.5 times larger than 2000’s median-sized home.
However, a new report from Trulia finds these homes are losing appeal in some areas of the country.
Trulia measured the median home value premium for McMansions in 2012 and compared them with today, finding the average premium for these types of properties fell from 138 percent in 2012 to 117 percent in 2016. In the 10 years measured, the McMansion premium dipped about 1 percent from 2006’s 118.2 percent.
In 85 of the largest 100 metros throughout the nation, the premiums for these types of homes have dropped, Trulia says.
Of the top 10 metros with the largest decrease in premium, eight of them are located in Florida.
Cape Coral-Fort Myers ranked in the top spot for falling premiums. The southwest metro area saw a 84.5 percent dip in premiums on McMansions between 2012 and 2016.
Fort Lauderdale and Miami came in at no. 2 and no. 3, with drops in premium costs for a McMansion of 83.5 percent and 82.7 percent, respectively. In 2006, the premium for a McMansion in Miami was 185 percent, and Fort Lauderdale’s McMansion premium was 175.9 percent.
The median price for a McMansion home ranging in size from 3,000 square feet to 5,000 square feet in Miami was $886,399 in 2006 and $760,012 in 2016.
California home premiums
In San Francisco, the point change of premium homes between 2012 and 2016 was a decrease of 38.2 percent. The Oakland point change was a dip of 30.9 percent. Ten years ago in Oakland, the McMansion premium was 63.8 percent — today, that premium sits at 45.9 percent. San Francisco premiums have changed during the same time period from 164.4 percent to 165.9 percent.
The McMansion premium in Orange County was 100.4 percent 10 years ago, and today, the premium for a McMansion home that has a median price of $1,323,769 is 105.6 percent. Compare this to Los Angeles, where the premium for a McMansion-type has gone from 76.2 percent for a $997,568 home in 2006 to a premium of 71 percent for a $907,192 home in 2016.
The drop in L.A.’s McMansion premium was 25.3 percent between 2012 and 2016.
Texas
Austin, Houston and San Antonio all posted a 10-year decrease in home premium costs. The cost of a median McMansion home in Austin in 2006 was $366,521, with a reported premium of 123.2 percent. Today, the premium is 80.6 percent for a median priced home of $452,925.
The premium for a McMansion in Houston was reported at 124.5 percent for a $296,975 median priced home in 2006. That same sized home today goes for a median price of $351,851 in Houston, which is a 107.2 percent premium. Between 2012 and 2016, the premium fell 31.3 percent.
Premiums in San Antonio were staggeringly high in 2006, at 175.1 percent. Today, that premium for a McMansion home is 136.8 percent.
Midwest
Between 2012 and 2016, premiums for a McMansion home in Chicago fell 26.6 percent. In 2006, the median price for a McMansion home in Chicago was $569,560, with a premium of 106.5 percent. Today, that median price is down to $485,272, with a premium of 118.9 percent
Less than two hours away, Milwaukee saw the biggest gain in premium price for a McMansion home, reported at 12.5 percent.
East Coast
In Washington D.C., the premium drop between 2012 and 2016 was 11.7 percent. In 2012, the premium was 70.6 percent, slightly lower than the reported premium of 76.1 percent in 2006, when the median price of a McMansion home was $732,094. Today, the median price is $576,061, and the premium is 58.9 percent.
The premium drop between 2012 and 2016 in New York City was 6.3 percent. As of 2016, the premium for a McMansion home was 73.2 percent at a median price of $701,475. Compare this with 2006, when the median price of a McMansion home was $767,156, with a premium of 68 percent.
