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Reasons For Bigger Houses In America

Here's why houses are getting bigger in America

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Houses
Americans prefer houses that have big and open spaces in them. Pixabay

BY DORA MEKOUAR

Americans have long been drawn to big, open spaces, so perhaps it’s no surprise that houses built in the United States are among the most expansive on the planet.

And they keep getting bigger.

The size of the average house has more than doubled since the 1950s. In 2019, the average size of a new single-family home was 240 square meters (2,584 square feet), according to the National Association of Homebuilders.

Deeply held feelings about one’s home may be rooted in America’s homesteading, pioneering past.

“The appeal of the house for Americans, going back into the 20th century, was that it signified autonomy. You know, every home is a castle,” says Louis Hyman, an economic historian and assistant professor at Cornell University. “So, it has these echoes of signifying independence and achievement.”

The federal government has pushed the idea that a nation of homeowners is ideal.

The 1934 establishment of the Federal Housing Administration revolutionized home ownership. By creating the financial mortgaging system that Americans still use today, the FHA made home buying more accessible for millions of people. At the time, most Americans rented. Homeownership stood at 40% in 1934. By 2001, the figure had risen to 68%.

In the 1940s, President Franklin D. Roosevelt equated homeownership with citizenship, saying that a “nation of homeowners, of people who own a real share in their own land, is unconquerable.”

Today, the homeownership rate in the United States stands at around 65%.

Houses
The average newly built house is now twice as big as the average new home in 1945. Pixabay

The ability to invest in their homes has helped mask economic stagnation for many Americans. Although unemployment is near a record low, real wages — the number of goods and services that can be bought with money earned — haven’t budged in decades for U.S. workers.

“As Americans find that their wages are stagnating after the 1970s, they’re able to make money by investing in houses,” Hyman says. “The houses become a way for average Americans to get financial leverage, which can multiply their returns. There’s no other way for Americans to get access to financial leverage outside of houses. You can’t do it in the stock market if you’re just a normal person, and so this is a way to basically speculate in housing.”

For some Americans, owning a big home is a status symbol, physical proof that they’ve succeeded in life.

“This kind of classical example of the big suburban home has been a very powerful idea for many, many decades now,” says architectural historian William Richards. “People sometimes want specific rooms that have specific functions —a mud room; everybody gets their own bedroom; there’s no bunking up; a dedicated laundry room.”

And spacious houses are more financially attainable than they used to be.

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For many Americans, a large home is not only a status symbol, but also an investment. Pixabay

“In the design and construction, there are greater efficiencies now for all sorts of reasons so that it’s less expensive to build a bigger house now,” Richards says.

But do bigger houses, sometimes called McMansions, make people happier? Not according to a recent paper that Clément Bellet, now an adjunct professor at INSEAD, a European business school, wrote as a postdoctoral fellow.

“Despite a major upscaling of single-family houses since 1980, house satisfaction has remained steady in American suburbs,” Bellet writes in the report.

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People living in larger houses, however, do tend to be more satisfied with their property, according to Bellet, but that satisfaction plunges when even more massive houses are built nearby. (VOA)

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Pentagon Blocks Commerce Department-Backed Ban on Sales By Tech Giant Huawei

Huawei has not been able to divest itself of American suppliers entirely

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Huawei
The US Department of Commerce had put Huawei on the "entity list" in May 2019, thus, preventing US firms from conducting business with the company unless they obtain a specific license, citing national security concerns with the Chinese telecommunications giant. Wikimedia Commons

In a breather to the Chinese telecom equipment and smartphone giant Huawei, the Pentagon has blocked the Commerce Department-backed ban on sales that make it harder for US-based companies to sell equipment to the handset maker, the media has reported.

The US Department of Commerce had put Huawei on the “entity list” in May 2019, thus, preventing US firms from conducting business with the company unless they obtain a specific license, citing national security concerns with the Chinese telecommunications giant.

The Commerce Department’s efforts to tighten the noose on Huawei Technologies Co. is facing a formidable obstacle: the Pentagon. Commerce officials have withdrawn proposed regulations that would make it harder for US companies to sell to Huawei from their overseas facilities following objections from the Defense Department as well as the Treasury Department, people familiar with the matter said, The Wall Street Journal reported on Friday.

The Commerce Department has subsequently issued temporary licenses to delay that designation, but companies have already begun finding ways to continue selling equipment to Huawei without falling afoul of Commerce penalties.

Meanwhile, Huawei’s latest smartphone Mate 30 Pro, unveiled in September, doesn’t contain American components. The flagship smartphone competes with the likes of Apple’s iPhone 11, which was also unveiled in September.

Huawei
In a breather to the Chinese telecom equipment and smartphone giant Huawei, the Pentagon has blocked the Commerce Department-backed ban on sales that make it harder for US-based companies to sell equipment to the handset maker. Wikimedia Commons

In the wake of the US ban, Huawei is sourcing audio amplifiers from the Netherlands’ NXP rather than Texas-based Cirrus Logic, and relying entirely on its own HiSilicon semiconductor division for Wi-Fi and Bluetooth chips rather than Broadcom. It’s using other firms, like Japan’s Murata and Taiwan’s MediaTek, for other parts previously supplied by US manufacturers, The Verge had reported in December.

However, Huawei has not been able to divest itself of American suppliers entirely.

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The company said it had been stockpiling components in anticipation of sanctions and separate teardowns revealed that some new devices were still reliant on American parts, the report added. (IANS)