The luxury housing market has seen an impressive 5.1 percent jump year-over-year. With the entry price to live in luxury pegged at $800,400, according to data released by Realtor.com recently, buying a luxury home might not be in the budget of an aspiring homeowner, who’s looking at big square-footage, at a lower cost.
That’s where the McMansions step in - They might not be the most good looking properties, but with an average of 3,000 square feet and priced between $600,000 and $735,000, these mansions come close to living life king-size.
According to a study by Realtor.com on 10 metros that had the highest percentage of supersized residences up for sale, more than 70 percent of the housing market saw an uptick in the share of listed homes since January 2016. The study found that there were more large homes being built now than there were at the height of the housing market boom over 10 years ago.
According to the study, Provo, Utah leads the market with homes exceeding 3,000 square feet for sale, followed by Denver, Colorado. The study found that 71 percent of listed homes in Provo had a square-footage of 3,000 or more, up from 66 percent in 2016. In Denver, this percentage is at 61 percent.
Moving to the East Coast, Bridgeport, Connecticut came in third after Utah and Colorado with 53 percent homes listed, having more than 3,000 square feet of space. However, the homes here were higher priced than Utah and Colorado at $735,000. At No. 4, Charlotte, North Carolina, which is seeing more companies setting up shop has about 43 percent homes listed boasting a square footage of 3,000 or more, followed by Indianapolis, Indiana with 41 percent.
Dallas, Texas (40 percent); Oxnard-Thousand Oaks, California (37 percent); Minneapolis, Minnesota (36 percent); Portland, Oregon; and Seattle, Washington (34 percent) rounded up the top 10 metros with most homes listed at 3,000 square feet or more.
Low inventory supply and high demand have plagued the luxury housing market in 2017. According to data released by Redfin recently, the number of homes for sale priced at or above $1 million fell 23.8 percent compared to the same period last year, marking three consecutive quarters of declines in luxury supply. The supply of homes priced at or above $5 million followed suit and was down 23.4 percent. In such a scenario, these super-sized homes, that aren’t exactly luxury housing fill an important gap.
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