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Wealthy wackos go big, while middle class shrinks

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Economic disparity is ever apparent. When the nation needs to address economic sustainability that translates into controlling its consumption to sustainable levels, wealthy persons ignore that because they can. They drive SUVs and even larger cars. They have enormous families. They live in increasingly larger homes. If you have looked at the new homes of late, many are not styled well; they are just very large boxes. Granted, wealthy persons are pioneers for new green technology. They are powering those large cars and large homes with greater efficiency. Poor people struggle to get by with the old leftover technology that is far more expensive to maintain. Needed is a national transformation in redevelopment with attention to communities that are engineered for sustainability.

The news today is that the cost of homes is increasing, but that one component driving this is that people are building larger homes. Believe it, a different bubble is building, and one day it will burst with more disastrous consequences. The problem is that government policy makers are so corrupted by financial institutions and the building industry that they haven’t a clue about where the compass should be headed. It surely should not be in the “large” direction.

“The price of new homes is surging — in part because houses are getting bigger
BY DINA ELBOGHDADY
April 24 at 3:59 pm

The surge in prices of newly built homes is not as steep as it looks at first glance.
The median price of a new home reached $290,000 in March, the highest level since the U.S. Census Bureau began tracking the figures in the mid-1960s, data released Thursday show. That’s up about 11 percent from February, and nearly 13 percent from a year earlier.

The limited supply of properties and higher building costs played a role in the increase. But so has the mix of homes. They’re getting bigger and fancier – and therefore pricier – as builders chase after wealthier buyers.

The Census Bureau figures that are most widely quoted -- "new residential homes" -- don’t adjust for size or quality; they simply reflect the number of new single-family homes sold. By that measure, new home sales increased 18 percent between 2010 and 2013, according to an analysis by research firm CoreLogic.

But when a home’s size and other characteristics are factored in, prices climbed at only half that rate, CoreLogic says. This is reflected in a separate Census index (the "constant-quality" measurement) that’s less widely publicized.”

http://www.washingtonpost.com/blogs/wonkblog/wp/2014/04/24/the-price-of-new-homes-is-surging-in-part-because-houses-are-getting-bigger/?wpisrc=nl_wnkpm

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