America has right-sized. Homeownership is still part of the American dream, but the homes we desire now are more about quality rather than size. From 1950 to 2000, the size of the average American house increased by 230 percent, while the number of people living in it fell 23 percent. Homes continued to grow until 2007, when the trend ended rather abruptly. Industry data clearly indicate that homes have gotten smaller and more efficient.  A recent survey by the National Association of Home Builders (NAHB) indicates that by 2015, the average home size will be in the range of 2,000 to 2,399 square feet. Most of us have lived in a dorm or apartment at some point in our lives, so we know that a family can live comfortably in a home under 3,000 feet, especially if that space is well-designed.

Right-Sizing Due to the Recession

What a difference five years makes. According to a study by the American Institute of Architects (AIA), “A severe housing recession, concern over rising home energy costs, and changing lifestyles have all increased interest in smaller homes that are designed to reflect the changing lifestyles of households.”

Some consumers have chosen to purchase a bargain and adapt it to meet their needs. Many others are remodelling their existing homes. One thing is consistent: Homeowners still need professional remodellers to help them adapt to a new reality.

Increase in Remodelling

A study by Harvard’s Joint Center for Housing Studies states that “deferred maintenance, distressed properties in need of renovation, decreased household mobility, and baby boomers retrofitting their homes so they can live in them as they age all support strong remodelling growth in 2011 and beyond. ” This is good news for remodellers, contractors, builders, and the manufacturers of home products.

Gated "McMansions" are giving way to the white picket fences of the early twentieth century. The homes of our grandchildren will have the solid charm of our grandparents’ homes, except they will have valuable upgrades.

Upgrading

Small spaces, like small luxury cars, rely on upgraded materials to provide comfort and to differentiate themselves in a crowded marketplace. Potential buyers often view multiple listings in each neighborhood or condominium complex they view. The floorplans that stand out are the ones that have differentiated themselves with high-quality materials. Making the right impression can result in a more expidited sales contract, which means fewer months of utilities, taxes, mortgages, maintenance, and HOA dues.

Inspiration From Vacation

Homes are becoming more like luxury hotel suites. They are efficiently laid out, well-appointed, and filled with amenities.

According to Consumer Reports, nearly 30 percent of the 121 million adults who recently completed a home-improvement project in the U.S. were involved in a bathroom remodel. An ongoing trend among remodellers is to rip out an existing bathtub and replace it will a glass shower enclosure. This frees up room, and helps make a small space appear and feel larger. Out with cookie-cutter, in with customization.

Homeowners are skipping their nights out on the town and investing in their nests instead. “They want to come home to a space as clean and refreshing as the resort where they spent their favorite vacation,” says interior designer Patricia McLean, who has designed residences at the St. Regis. “I provide value and inspiration for my

Architect Jeffrey Baker, AIA, agrees with McLean. “Homeowners are still investing, but they are spending to responsibly enhance their lifestyles. I have had four clients in 2011 reclaim wasted space by remodelling their basements. I tell them to remove those ugly acoustic tiles and replace them with newer products, such as WoodTrac Ceiling System by Sauder. WoodTrac provides a true value proposition , the look of coffered millwork for approximately the same price as premium acoustic tile.

“With WoodTrac,” Baker says, “you maintain overhead utility access. In 2011, a remodeller or architect has to make thoughtful decisions and be prepared to support his or her decisions.

Small Footprint

A small home can be compared to the cockpit of an airplane – it requires thorough space planning and deliberate design to make everything function well. Professional remodellers have the experience to provide their clients with demonstrable value. They combine creativity with practicality and translate the client’s vision into a three-dimensional space.

Assisting professional remodellers are trade resources, which give the client another incentive to hire the building professional. A smaller footprint is an opportunity for the home and building professional to show off his or her unique skill-set.

Good Things Come in Small Packages

The small spaces trend contributes to a new way of living for consumers. Television shows such as “Lifestyles of the Rich and Famous” were cancelled long ago, replaced with best-selling books like Gale Steves’ Right-Sizing Your Home. American homeowners are demanding quality products to accommodate their changing lifestyles, and home and building professionals are responding in kind. The result is value-oriented, distinctive and multi-use products that make homeowners’ lives easier and spaces more usable.

The market has spoken, and it tells us that bigger is not always better. Professional remodellers have a bright future ahead, as they are qualified to customize spaces in a thoughtful and client-oriented manner.

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Steve Kleber is the president of Kleber & Associates (K&A), a full-service marketing agency which specializes in the home and building channel. Steve is the president of the National Remodeling Foundation and a past president of the National Kitchen & Bath Association’s Center for Kitchen and Bath Education and Research. Kleber is a frequent speaker on consumer behavior and trends at a variety of key industry events, and a contributor to noted industry publications.