‘McMansions’ become a liability as buyers reject the wasted scale of the housing market
PMG’s affordability principal Dan Coakley talks to Fox News Digital about what it might take to make housing affordable again across the country.
“McMansion” is officially moving from a status symbol to a legal liability.
Twenty years after the housing boom of 2006, new data from Zillow reveals a fundamental shift in the American Dream: Buyers are abandoning the “wasted scale” and the heavy mahogany steps of the “sanctuaries” that work best.
As insurance premiums and property taxes rise, real estate experts warn that large, informal centers of crisis are becoming financial exposure for homeowners who fail to adapt.
“The desire for space hasn’t disappeared, but the definition of value has changed. Buyers are still looking for family space, entertainment and flexibility. They don’t want extravagance without purpose,” Catena Homes principal Harrison Polsky told Fox News Digital.
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“With rising insurance costs in Texas and high property taxes, a 5,000-plus-square-foot home that isn’t energy-efficient or thoughtfully designed can feel like a total liability. But a well-built, high-performance home of that size with solid insulation, functional systems and an efficient structure still represents the American Dream here,” he added. “Change is not completely off the scale; it’s off the wasted scale.”
Construction workers build a new home in August 2006 on a new lot in Sugar Grove, Illinois, a suburb of Chicago. (Getty Images)
“In Palm Beach County, scale is still very attractive, especially in waterfront communities and homes. However, rising insurance costs in Florida have changed consumer behavior,” RWB Construction Management founder Robert Burrage also told Fox News Digital.
“A 6,000 or 7,000-square-foot home built in 2006 without impact glass, high-rise construction, modern roofs and generator systems can feel like financial exposure,” notes Burrage. “Consumers are willing to pay for size, but only if it’s designed to last.”
Back in 2006, luxury was granite and mahogany. By 2026, Zillow says pickleball courts and golf simulators (with listings up 25%) for whole-home batteries (up 40%) and zero-energy homes (up 70%).
“Durable and lifestyle go hand in hand. Whole-home generators, battery storage, storm-rated systems, smart-home integration and extended outdoor living are expected,” Burrage said.
These 2006 California mansions look similar in size, shape and color. | Getty Images
“A large home without those features narrows the buyer pool significantly. Meanwhile,” he said, “a smaller but more technologically advanced home designed for indoor and outdoor living often does better in terms of needs and prices.”
“Today’s consumers are more educated about operational costs and long-term durability,” Polsky admits. “In this market, lifestyle infrastructure and sustainability are no longer bonuses. It’s an expected foundation.”
The resale advice used to be: “Keep it beige.” Now, Zillow finds that buyers are giving more to olive green and charcoal gray, with “color immersion” reported by 149%. Experts say the “beige box” of the mid-aughts is a hard sell now.
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“A sterile beige spec home from the mid-2000s feels contrived. Buyers today respond to depth and personality but must be selective,” said Polsky. “We encourage sellers to modernize things with warm neutrals, layered textures, and periods of targeted colors. ‘Safe’ used to mean nothing. Now safe ways are well-designed. Homes without bullets tend to photograph poorly and last longer.”
“Consumers are looking for simple, organic palettes with texture and architectural contrast,” estimates Burrage. “We advise our clients who build with us to keep interiors fresh and bright in a strategic way. Thoughtful design can have a huge impact on the buyer’s perception and the final sale price.”
As millennials and Gen X become the primary purchasing power, they are rejecting the norms of the past. Real estate experts both answered “yes” when asked if the market is seeing a permanent cultural shift in what “luxury” means.
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‘The Big Money Show’ discusses why millions of American homeowners aren’t selling.
“Boomers selling older properties should give more consideration to modern plans and aesthetics,” says Burrage. “Buyers are comparing them to newly built coastal homes designed for climate resilience and low operational risk.”
“Boomers selling 2006-era properties need to understand that today’s buyers compare everything to new construction and modern infrastructure. Updating mechanical systems, improving energy efficiency and refreshing interiors before listing can significantly improve standing,” said Polsky. “The American Dream has not disappeared, it already has a purpose. Buyers are looking for homes that support the way they live, not just how they are perceived.”
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