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PMG Affordable Director Dan Coakley talks to Fox News Digital about what needs to be done to make housing affordable again across the country.
The “McMansion” is officially moving from a status symbol to a liability.
Twenty years after the real estate boom of 2006, new data from Zillow reveals a fundamental investment in the American Dream: Buyers are abandoning “wasted scale” and mahogany-heavy footprints for high-efficiency “sanctuaries.”
As insurance premiums and property taxes rise, real estate experts warn that oversized, unoptimized half-lot estates are becoming financial exposure for owners who don’t adapt.
“The appetite for space hasn’t gone away, but the definition of value has evolved. Buyers still want space for family, entertaining and flexibility. What they don’t want is excess without purpose,” Harrison Polsky, director of Catena Homes, told Fox News Digital.
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“With rising insurance costs in Texas and higher property taxes, a home over 5,000 square feet that isn’t energy efficient or carefully designed can seem like quite the liability. But a well-built, high-performance home of this size with strong insulation, efficient systems and a functional design still represents the American dream here,” he added. “Change is not completely away from scale; it is far 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 Countythe scale still has a strong appeal, especially in waterfront communities and estates. However, rising insurance costs in Florida have changed buyer behavior,” Robert Burrage, founder of RWB Construction Management, 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 absolutely look like financial exposure,” Burrage noted. “Buyers are willing to pay for size, but only if it’s designed for resilience.”
Back in 2006, luxury was granite and mahogany. By 2026, says Zillow they are pickleball courts and golf simulators (with 25% mentions on the list) to whole home batteries (40%) and zero energy homes (70%).
“Resilience and lifestyle go hand in hand. Whole-house 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 these features significantly narrows the pool of buyers. 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 much more educated about operating costs and long-term durability,” agreed Polsky. “In this market, lifestyle infrastructure and sustainability are no longer bonuses. They are baseline expectations.”
Resale advice used to be, “Keep it beige.” Now, Zillow finds that buyers are bidding more for olive green and charcoal gray, with “color of color” mentions up 149%. Experts said the “beige box” of the mid-aughts is a tougher sell now.
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“The house of spec. “We’re encouraging sellers to modernize with warmer neutrals, layered textures and intentional moments of color. “Safe” used to mean blank. Now safe means carefully designed. Houses that lack character tend to photograph poorly and stay longer.”
“Buyers want lighter organic palettes with architectural texture and contrast,” said Burrage. “We are advising our clients who are building with us to strategically keep interiors fresh and light. Thoughtful design can materially affect buyer perception and final sale price.”
How millennials and Gen X become the main purchasing force, they are rejecting the norms of what it once was. Both real estate experts answered “yes” when asked if the market is experiencing a permanent cultural shift in what “luxury” means.
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“Boomers selling older estates should strongly consider modernizing systems and aesthetics,” Burrage said. “Buyers are comparing them to newly built coastal homes designed for climate durability and lower operational risk.”
“Boomers selling 2006-era estates need to understand that today’s buyers compare everything to new construction with modern infrastructure. Updating mechanical systems, improving energy performance and renovating interiors before moving in can dramatically improve positioning,” Polsky noted. “The American Dream hasn’t gone away, it’s just become more intentional. Buyers want homes that support how they live, not just how they look.”
