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Chino, CA Division 800.864.6881

Cloverdale, CA Division 800.767.2237

Englewood, C0 Division 800.525.8427

The Moving Target Moves On

The latest figures on the American house rernind us that U.S. homes have changed remarkably in less than a generation. It's not your father's house, anymore.

The differences can have a sizable impact upon anyone supplying materials, products and.services.

The National Association of Home Builders reports that in 1973 new houses averaged 1,600 square feet. Today, it's more than 2,200 square feet. It is more than likely they have central air conditioning, four bedrooms, a fireplace, a family room, a swimming pool and a garage for at least two cars. Bare bones starter homes are increasingly rare.

Today, nearly half of all new homes have 2.5 bathrooms; in 1973 it was l9%o. Less than a quarter had four or more bedrooms, now a third do. Fireplaces have gone from 34Vo to 6OVo. What formerly was considered a luxury now seems a requirement.

There is a parallel with many products as the richness of American life continues escalatins. In autos, appliances and electronics, the deluxe model is most popular, just like housing. The spartan, do-without world of the past seems far removed from today's pampered consumer.

In housing, a number of factors have come together to move buyers upmarket. A sustained period of prosperity with its higher salaries, consumer confidence, sense of job security, low unemployment and low mortgage rates has enabled homebuyers to enjoy a move up.

While lot sizes are smaller than they were in 1988, environmentalists still complain that a selfish public is using land for new homes that enviros feel should be made off limits for all but natural critters. We suspect that the number of potential homebuyers who will sacrifice their chance for a new home for the Kangaroo Rat, for instance, is pretty small.

Whether you supply raw material or finished products, be aware that dramatic changes in housing may well require equally dramatic changes from your side of the equation.