Are Americans Living in “Too Much House”?

I read an article that said that since 1974 the average American home square footage has increased from 1695 square feet to 2349 square feet (in 2004). Bedrooms have increased by 54 square feet. The average kitchen square footage has even doubled in size and ground-floor ceilings have grown by more than a foot! I can understand the bedroom increasing — the ‘spacier’ the better. These latest increases in size were about 8 years ago, so who knows how much it has increased to today — 3000 square feet?! Not really — some experts say that it’s actually been decreasing due to the economy. Nonetheless, Americans love their big stuff: Big Macs, big flat screen TVs, big cars (I mean look at all the SUVs and other “big” things you can buy). I know that many still live in large houses but I have to ask myself, “Is there such a thing as too much house?” Lenders say “yes – there is such a thing as too big a home”.

2639 Green Meadow LN, NE Atlanta

Financial advisers say that the rule of thumb for housing is that you should only buy a house that has a purchase price of 2.5 times one’s annual income. Lenders say to put 20% down of the purchase price — which should equal approximately one year of income — and that buyers spend no more than 1/3 of their income on mortgage. Wise advice.

Other lenders say that one shouldn’t spend more than 28% of one’s monthly income on a mortgage. Anything more than that is too much. As a general rule, your money should determine the size of your house: you shouldn’t be asking mortgage companies for a loan to buy a house that is not affordable to you. We all must think about the long-term.

Watch this video I found on the internet. They have some good information on how much house is too much house. Also, if you are interested in knowing if you’re living in ‘too much house’ or you just want to know before you buy a house (whether here in Brookhaven or elsewhere), check out the calculator. I’m not saying that it’s totally accurate, but it might give you some idea so you can know where you stand. So long for now! Next week, I’ll let you know if you are living in too much house.