The Atlanta Journal-Constitution
The Great Compression
As housing demand persists, homes might be getting more expensive — but they’re also getting smaller.
Robert Lanter lives in a 600-square-foot house that can be traversed in five seconds and vacuumed from a single outlet. He doesn’t have a coffee table in the living room because it would obstruct the front door. When relatives come to visit, Lanter says jokingly, but only partly, they have to tour one at time.
Each of these details amounts to something bigger, for Lanter’s life and the U.S. housing market: a house under $300,000, something increasingly hard to find. That price allowed Lanter, a 63-yearold retired nurse, to buy a new single-family home in a subdivision in Redmond, Oregon, about 30 minutes outside Bend, where he is from and which is, along with its surrounding area, one of Oregon’s most expensive housing markets.
Lanter’s house could easily fit on a flatbed truck, and it is dwarfed by the two-story suburban homes that prevail on the blocks around him. But, in fact, there are even smaller homes in his subdivision, Cinder Butte, which was developed by a local builder called Hayden Homes. Some of his neighbors live in houses that total just 400 square feet — a 20-by-20foot house attached to a 20-by-20-foot garage.
This is not a colony of “tiny houses,” popular among minimalists and aesthetes looking to simplify their lives. For Lanter and his neighbors, it’s a chance to hold on to ownership.
Lanter, who is recently divorced, came back to central Oregon from a condominium in Portland only to discover that home prices had surged beyond his reach. He has owned several larger homes over the years and said he began his recent search looking for a three-bedroom house.
“I did not want to rent,” he said after a five-minute tour of his “media room” (a small desk with a laptop) and bedroom (barely fits a queen). After being an owner for 40 years, the idea of being a tenant felt like a backslide.
And after living on the 17th floor of a Portland condominium, he had ruled out attached and high-rise buildings, which he described as a series of rules and awkward interactions that made him feel as though he never really owned the place.
There was the time he sold a sofa, and the front desk attendant scolded him for moving it down the elevator without alerting management a day in advance. Or the times he came home to find someone parked in the spot he owned and paid property taxes on. Try to imagine a random driver parking in a house’s driveway, he said — there’s no way.
A single-family home means “less people’s hands in your life,” Lanter said.
He wanted the four unshared walls of the American idyll, even if those walls had minimal space between them and were a couch length from his neighbor.
A chance at ownership
Several colliding trends — economic, demographic and regulatory — have made smaller units like Lanter’s the future of American housing, or at least a more significant part of it. Over the past decade, as the cost of housing exploded, homebuilders have methodically nipped their dwellings to keep prices in reach of buyers. The downsizing accelerated last year, when the interest rate on a 30-year fixed rate mortgage reached a two-decade high, just shy of 8%.