Perhaps the most interesting news story I came across in the paper this morning was a brief article reporting that Americans are losing interest in large houses, with the median size of a single-family new house decreasing from 2,277 square feet in 2007 to 2,215 last year. Not by much, but it could be the start of a steep drop.
Trends are changing due to the economy. The real estate market has virtually collapsed. Mortgage and maintenance costs are soaring. For some people, energy usage is another big deal. Even if and when the economy recovers - and no one expects a return to the supply-side-fueled boom that began in the early eighties and interrupted by two recessions before abruptly ending two years ago - more Americans are looking at houses as places to live rather than investments. That means no more luxury features, no walk-in linen closets the size of a guest room, and no more fancy bathrooms. People are expected to live more simply. Maybe we'll even pay more attention to our towns and neighborhoods as more people cut back on spending on private, indoor entertainments like flat-screen television sets.
The same rule applies for cars. Another article I found on the Internet reported on how Americans are trading down from big cars and sport-utility vehicles to small family sedans, which close less to insure and maintain. Some folks are keeping their cars longer rather than buy new ones. Those who insist on luxury cars are buying less prestigious premium models; one car buyer reportedly opted for a Hyundai Genesis over a BMW. Guess Hyundais really are cars that make sense. (If you remember the eighties, you remember that Hyundai slogan. You also remember that Hyundai started out selling basic, small economy cars only.)
And if we buy minivans, we're less likely to get them with video entertainment systems.
So Americans will not only have smaller houses with smaller garages, they'll have smaller cars to fit them in as the economy contracts more and China and India buy more oil at our expense to fuel their own economies, with less energy for us to run our houses and cars. Especially cars. We can still heat out houses with natural gas, but natural gas-powered vehicles are a way off, no matter what T. Boone Pickens says. We're about to (re)discover the joys of little cars and think small, as that classic Volkswagen ad asked us to. We'll demand more practicality and versatility in our cars as well.
One thing will likely not change - we won't buy hatchbacks.
Americans simply like trunks better than hatches. For all of its unorthodox features - a rear engine, air cooling - the Volkswagen Beetle was still a huge hit in America because, like the modern Jetta, it still had a trunk.
Hatchback doors are considered even weirder here than aircooled engines.
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