Thinking Smaller

I recall my early days at Bassenian Lagoni Architects in the mid 1980’s amongst an army of talented designers, crafting beautiful homes for many of Orange County’s finest homebuilders. As I saw these beautiful homes and communities come to life, a stark reality hit me - I’d never be able to afford to buy what we were designing. At least that was my perception at the time.

Fast forward 35 years later and this is the reality for so many today. In an era of rising interest rates, dwindling land supply and low housing inventory, the challenges for first time buyers seem to be growing, making homeownership more of a fantasy than a reality.

In those early days at BL, I remember sitting in a meeting with Ken Agid, a brilliant real estate marketing consultant and owner of The Marketing Department. I don’t remember what we were meeting about, but I do remember a prolific statement Ken made that resonates more loudly today than it did then. He said there is a market and a need on the horizon for 500 - 600 square foot homes outside of urban city centers. At the time it seemed unusual, even aggressive. Most in the meeting looked at him like he’d lost his mind, but as I thought about it later, I realized how potentially correct he was. Living in a non-urban, affluent part of the country, I couldn’t afford a home as a young professional, nor did I see it happening anytime soon. I recall thinking, if I could just buy a one-bedroom apartment at a reasonable price, that’s all it would take to start the real estate leapfrog game.

That never became available and even 30 years after I first heard Ken make the statement, it remained an anomaly. Land values have continued to climb and the ratio of land to house cost has only increased meaning affordability has significantly worsened. What to do? 

A few years back we were involved in two communities, both for sale townhomes, in highly desirable markets. In each the builders rolled the dice on incorporating a smaller square footage, market rate home. Both were +/-650 square feet, one bedroom for sale homes. Both communities opened with success and the acceptance and demand for those lower footage, lower price point homes were incredible. To be able to purchase a home at half the price of their larger 1,200 square foot neighbor in desirable areas of Orange County was unheard of. The design of both homes was uncompromised compared to their larger neighbors. Open and bright interiors, kitchen islands, private bedroom suites with walk-in closets, sizeable decks for outdoor living and pets and a spec level identical to their larger price point neighbors. The only difference, they were half the size.

Small doesn’t imply less than and with astute design sensitivity small can live as well as larger counterparts. The success of these homes wasn’t merely a low/affordable price. It was the combination of well-designed, functional, and impressive interiors coupled with a more attainable price point.

As the ever-increasing trend of higher prices continues, design professionals, builders, landowners, mortgage companies and other stakeholders in the development industry will need to step up creativity in their respective disciplines to respond to the need for more affordable/attainable housing.  

Photographer: (Top) Tsutsumida Pictures, (Bottom) Eric Figge Photography