Marketing Home Products

It seems the more you have, the more you need. What if Americans traded in all of their “somethings” for nearly nothing? The recent “extreme-downsizing” trend is becoming a tempting challenge for many, and as their piles of possessions shrink, so do their homes.

In “Forget Marta Stewart—Try Martha Hubbard,” Ellen M. Kozak claims she is on the verge of tossing nearly all of her possessions and moving to a small space because the idea of less junk to dust, less floor space to sweep and less to account for is appealing. So appealing, in fact, that some are even setting a limit on the number of things they own. The 100 Thing Challenge, a grassroots movement in which people eliminate all but 100 of their possessions, is a minimalist trend that is proving successful for people across the country who are “overwhelmed with stuff.”

One reason for the purging of our possessions is the technological advances we’ve seen in the past few years. Electronic readers have replaced the books on our bookshelves and iPods have diminished our CD collections. Smart phones have virtually everything we need: camera, calculator, computer, alarm clock, and so much more including, of course, a phone. These things that took up space before are now all housed in one or two central systems. We don’t need alarm clocks, calculators, CD players or books if there’s an option to consolidate all into one device. These objects could even be considered irrelevant, especially to those adopting the “100 Thing” mentality.

But even if you do have more than 100 possessions and haven’t packed up your car and headed to warmer weather where you can toss your bulky winter wear and never worry about that snow shovel, the idea of having fewer items in smaller spaces is a continuing and noticeable trend, especially in the housing industry. According to the National Association of Home Builders (NAHB), the average size of a new- single family home declined from 2,521 square feet in 2007 – the peak of the housing boom – to 2,377 square feet in 2010. After the economic downturn in 2009, it seems everyone learned to cut out what they don’t need. People are now making the most of the space they do have; they’re remodeling their homes instead of moving into new ones.

Whether it’s an extreme elimination of items or a simple downgrade, it looks like the “bigger is better” mentality is on its way out. Much like we’ve seen the change from big gas guzzling SUVs and trucks to fuel-efficient eco-friendly cars, the change from excess to absence in possessions – and subsequently living spaces – is right behind.

This morning on CNBC’s Squawk Box, former Federal Reserve Chairman Alan Greenspan said one of the main keys to getting the housing market back on track will be to reduce the number of foreclosed homes in the channel.

With approximately 4 million foreclosed or acutely delinquent homes in the US, we can only imagine what the situation would be if they all flooded the market simultaneously. It’s my opinion, however that the banks can only process some 900,000 properties a year. So what are we to do with this distressed inventory? Should we continue to sit on the sidelines and hope that things will improve? No! We need to continue to think creatively as a community about proactive ways we can bring ourselves out of this situation. I’ve come up with a few ways to get these homes off the market while benefiting communities. For example:

• FEMA could purchase the homes near disaster areas such as Tuscaloosa, Alabama and Joplin, Missouri to provide temporary housing for victims instead of bringing in FEMA trailers. Homeless residents could then have the option of buying these homes from the government once they are in a position to do so.

• Neighborhoods or city governments could buy homes and clear the land for community gardens or parks.

• Corporations could buy homes near their buildings to provide employee housing as part of a benefits or relocation package.

• Non-profit organizations or city governments could buy the homes for homeless shelters.

Let me know what you think of these suggestions and what other ideas you may have for putting distressed properties to good use!

In efforts to steer the US toward a more environmentally friendly and sustainable future, President Obama’s administration has implemented programs and initiatives to encourage both businesses and homeowners to embrace sustainable practices and technologies. Recently the federal government took another step toward encouraging homeowners to upgrade their homes by announcing the new PowerSaver program through the FHA. The program will allow homeowners to borrow up to $25,000 to make energy improvements. Fannie Mae’s new Energy Improvement feature for mortgage loans is very similar to the government’s program.  Both programs encourage homeowners to replace doors and windows, HVAC systems, water heaters, insulation and duct sealing for more energy efficient products and technologies like solar panels and geothermal systems.

Home builders are concerned that the new programs only encourage revamping existing homes and don’t encourage consumers to purchase new energy efficient homes. Fannie Mae has ended its Energy Efficient Mortgage that allowed home buyers to finance energy efficient homes, but the federal government still has its Energy Efficient Mortgage program intact. Home building company Meritage is concerned that appraisers and banks are not accurately recognizing the value of energy efficient features when reviewing mortgage applications, making it more difficult for consumers to purchase new energy efficient homes. While HUD representatives believe the value of energy efficiency in new construction is being recognized by local building codes and appraisers, Meritage believes the new PowerSaver program gives consumers even more reason to stay in their existing home rather than buy a new one.