‘McMansions’ become liability as buyers reject wasted scale in housing
PMG Affordable principal Dan Coakley speaks to Fox News Digital about what it may take to making housing affordable again across the country.
The “McMansion” is officially moving from a status symbol to liability.
Twenty years after the 2006 housing boom, new data from Zillow reveals a fundamental reversal in the American Dream: Buyers are ditching “wasted scale” and mahogany-heavy footprints for high-efficiency “sanctuaries.”
As insurance premiums and property taxes soar, real estate experts warn that the oversized, unoptimized estates of the mid-aughts are becoming a financial exposure for homeowners who fail to adapt.
“The appetite for space hasn’t disappeared, but the definition of value has evolved. Buyers still want room for family, entertaining and flexibility. What they don’t want is excess without purpose,” Catena Homes principal Harrison Polsky told Fox News Digital.
HOUSING MARKET COOLS AS PRICE GROWTH HITS SLOWEST PACE SINCE GREAT RECESSION RECOVERY
“With rising insurance costs in Texas and higher property taxes, a 5,000-plus-square-foot home that isn’t energy efficient or thoughtfully designed can absolutely feel like a liability. But a well-built, high-performance home of that size with strong insulation, efficient systems and functional layout still represents the American Dream here,” he added. “The shift isn’t away from scale entirely; it’s away from wasted scale.”
Construction workers build a new home in August 2006 in a new subdivision in Sugar Grove, Illinois, a suburb outside of Chicago. (Getty Images)
“In Palm Beach County, scale still has strong appeal, particularly in waterfront and estate communities. However, soaring insurance costs in Florida have changed buyer 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, elevated construction, modern roofing and generator systems can absolutely feel like financial exposure,” Burrage noted. “Buyers are willing to pay for size, but only if it’s engineered for resilience.”
Going back to 2006, luxury was granite and mahogany. In 2026, Zillow says it’s pickleball courts and golf simulators (with listing mentions up 25%) to whole-home batteries (up 40%) and zero-energy-ready homes (up 70%).
“Resilience and lifestyle go hand in hand. Whole-home generators, battery storage, hurricane-rated systems, smart-home integration and expansive outdoor living are expected,” Burrage said.
These large 2006 California homes look identical in size, make and color. | Getty Images
“A large home without those features narrows the buyer pool significantly. Meanwhile,” he said, “a slightly smaller but technologically advanced home designed for indoor-outdoor living often performs better in terms of demand and pricing.”
“Today’s buyers are far more educated about operating costs and long-term durability,” Polsky agreed. “In this market, lifestyle infrastructure and…
Read More: ‘McMansions’ become liability as buyers reject wasted scale in housing