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Bigger is better when it comes to dream homes, according to a report released Thursday by Trulia called "Dreaming Big: Americans Still Yearning for Larger Homes." According to the report, dreaming of a bigger homes spans all generations with Baby Boomers, Millennials, and GenXers all surveying they want more space.
Trulia’s Housing Economist Ralph McLaughlin said overwhelming number of people wanting a new house isn’t surprising.
"If you ask someone if they want a bigger airline seat, they will probably say yes," he said. "I think the same thing goes for housing. People want more space."
Millennials ranked highest among the generations with 60 percent saying they want a bigger home, while GenXers ranked second with 48 percent, and Baby Boomers coming in at 26 percent. McLaughlin believes many Millennials may not be happy with their current home size because they are still recovering from the recession.
"The Great Recession hurt many Millennials. It was a time for tremendous job cuts. In 2007 and 2008 when they were entering the job market there were no jobs for them," he said. "It's possible now that job growth is increasing many of them are emerging from their parents' basements into places where they are sharing a small space with a roommate."
Not surprisingly, Baby Boomers had the highest number of surveyors who would like to downsize at 21 percent, while GenXers had 14 percent, and Millennials coming in last at 13 percent. However, 53 percent of Baby Boomers and 48 percent of GenXers said they are currently living in their dream home.
While the trend of more Baby Boomers retiring and wanting to downsize may have a lasting impact on the housing industry, Mollie Wuff at Belmont Partners believes the real estate industry may have to target Millennials in the future.
"While Ys (Millennials) comprise only 12 percent of the real estate workforce, they make up 34 percent of the population and have the sheer numbers necessary to replace the retiring Boomers. If companies are to keep pace with industry growth in the years to come, they should adjust their practices to effectively attract and retain this new generation of human capital," Wuff said.
What McLaughlin found most surprising was the demographics expected to want smaller homes all surveyed the opposite. People without kids, living in suburbs, or currently living in an affordable neighborhood all said they wanted bigger homes.
About 39 percent of people without kids want a larger home; with 42 percent of people living in suburbs and 40 percent living in an affordable neighborhood also wanting a larger home.
McLaughlin said reasons for these finding may differ between individuals because different residents may have different reasons for needing more space.
"My parents are retiring to a large home in Arizona because my dad is active and has a home gym and my mom has a room for arts and crafts," McLaughlin said.
