Buyers snap up quality-built, energy efficient smaller homes
Staff and Wire Report
Peter Moon’s family of six snuggles into bench seats for dinners together. Their house is 1,100 square feet, a bit smaller than two squash courts. “We really don’t need more space,” said Moon, a 46-year-old software designer. “I don’t mind being cozy.”
Moon said he and his wife dumped a much larger home in Boston three years ago to seek a simpler, greener life in Kirkland, Wash. Moon recently persuaded his parents to sell their 2,000-square-foot house on New York’s Long Island and retire to a small neighboring cottage.
“We’ve lived in bigger, older houses, but this is by far the most livable,” Moon said. “There’s no place to accumulate junk.”
The designers of the Moon family house, Ross Chapin and Jim Soules, think small in a way that is practically un-American. They build tract houses that are half the size of the average U.S. home and cost a lot more per square foot. What is surprising is how quickly they sell them. The men are building their fortunes with buyers willing to pay more for less. Customers, such as the Moons, say they prefer taking up less room and using less energy.
Chapin, an architect, and Soules, a developer, met by chance in 1996, when nearly everyone else in the housing market was thinking big. Now, as the surplus of unsold McMansions increases, other developers are starting to lean their way.
In the past decade, the two men have built about four dozen Craftsman-style cottages that range in size from 800- to 1,500-square-feet. The houses are squeezed into five boutique-sized tracts, all within a two-hour drive of Seattle. Some were melded into more spacious suburbs under zoning laws modified to ease density restrictions for small houses. Most were built around a grass commons shared by a dozen or so like-minded residents who boast of their tract’s smallish carbon footprint.
Some builders in the Volusia-Flagler market are following the trend of smaller houses, albeit without the steeper prices of Chapin’s and Soules’ bungalows.
“We generally used to build 3,000- to 4,000-square-foot homes until about a year ago, but most are now 1,200 to 1,300 square feet,” said Craig Olson, president of HeartBilt Homes in Orange City. “We’re trying to keep the payments down so it costs the same to buy or rent.”
Olson said his company is targeting the first-time homebuyers, with three-bedroom, two-bath houses starting at $107,400 on a buyer’s lot. That 1,178-square-foot house will have a 10-year structural warranty, knock-down ceilings, Energy Star appliances and energy-efficient features, such as double-pane windows, throughout.
Bob Fitzsimmons, chief executive of Gallery Homes of DeLand, is using similar techniques in his company’s houses. Gallery’s smallest house is 1,129 square feet while still comprising three bedrooms and two baths. Like HeartBilt’s smallest model, Gallery’s house has a one-car garage. But all of Gallery’s models, like HeartBilt’s, include some upscale touches and Energy Star appliances.
Fitzsimmons said the decision to go smaller was “to make it affordable, number one.”
“The more you put into a house, the more you have to charge,” he said. “You have got to look at what people can afford, and build a product they can afford.”
Gallery’s smallest model — the company also has two other, larger floor plans — costs $105,900, not counting the lot.
Developers in Milwaukee, Boston, Indianapolis and elsewhere are looking to spread the idea of smaller houses, and for good reason. While falling home prices and sluggish sales have slashed new housing starts by a quarter in the past year, Chapin and Soules said they field a dozen calls a week asking, “When’s your next project?” They have one house left for sale, a two-bedroom, two-bath cottage of 1,000 square feet in Redmond, Wash., the home of Microsoft. At $599,950, it isn’t cheap. The median price last month for a single-family home in the neighborhood was $542,500. Residents of the tiny tracts say they don’t mind paying a premium for such touches are hardwood floors and custom cabinets because the two men develop more than just housing.
“We walk into each others’ houses and borrow sugar and do all the kinds of things you did in the 1950s,” said Pat Hundhausen, a retired special education teacher. Her Umatilla Hill development, like the others, is a throwback to the bungalow courtyard, a design that appeared in the 1920s, before traditional, single-family tract housing gave form to postwar suburbia. Hundhausen and her husband left Waukesha, Wis., their hometown of 40 years, after visiting friends a couple of years ago in Umatilla Hill. It took the couple less than a week to buy a nearby lot.
The small-home buyers are a mix of single professionals, young families and retired empty-nesters. While aspirants to the traditional American Dream seek ever bigger, more secluded homes, residents here say they prefer making do with less. Getting to know the neighbors is a bonus. Todd Staheli and his wife are raising two daughters in a 998-square-foot house surrounded by people they greet by name. “There are a lot of eyes on them as they ride their scooters and bikes,” says Mr. Staheli.
The houses are painted in Easter-egg pastels of salmon, yellow and avocado green, adding to the tract’s storybook feel. Residents tend thickets of poppies, lavender, catmint, roses and lilies. Their front-yard gardens are surrounded by a knee-high fence, leading out to a sidewalk and the grass commons. Single-car garages are built along an edge of the tracts, which are usually set back from a main street or connected by private road.
“It feels like you’re in this oasis when you walk home, even though you’re close to a major shopping center, a bus line and a college,” said Eileen McMackin, who lives at the Greenwood Avenue Cottages in Shoreline, Wash.
Chapin, the architect, uses clever design tricks to give the houses the illusion of more space. Corner windows add light and better views. Large skylights in the upstairs loft keep sloped ceilings from feeling cramped. Hollowed-out interior walls provide built-in bookshelves and cubbies for pictures and knickknacks. Every crawlspace is used for storage. He worked with Mr. Soules to give the houses their signature retro look.