While it may have been necessary to have a lot of storage space in your own house a few years ago, a significant change has now taken place in this regard.
Shiller: Technologies replace the need for a large house
In the early 2000s, everyone wanted to own a large property, Nobel laureate and professor at Yale University Robert Shiller told the Wall Street Journal (WSJ). And the trend is no coincidence: “Having a big house is a symbol of success, and people want to look successful,” says the economist. However, it is often forgotten that control over the costs associated with the property have a major impact on future assets, Business Insider explains the economist’s thoughts.
“Big houses are a waste. People still think about houses in a way that roughly corresponds to the 19th century. We no longer need all this space for the modernization, ”Shiller explained to the WSJ his aversion to houses that were too big. Because technologies have penetrated every aspect of our lives and replaced the previous need for additional space in the house. “For example, we don’t need elaborate kitchens because we have all kinds of food delivery services. And maybe you don’t need a workshop in the basement. You used to have a filing cabinet for your tax records, but now everything is electronic, so you don’t need that either. And bookshelves, for people who read a lot. We now have electronic books, so we no longer need bookshelves, ”said Shiller.
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Shiller is not alone in his attitude
The Nobel Prize winner is not alone in this opinion – Ellen Weber, a certified financial planner, sees things very similarly. “This whole idea that every single person in the house needs their own bathroom is a little ridiculous. And yet most houses are now being built with this type of space, even though families are shrinking. More and more of our things are stored electronically; we should need less storage space for that. There is also a tendency to buy houses with large courtyards that most people don’t use, but end up spending a lot of money to pay someone else to mow and maintain, ”Weber told the WSJ.
“The key to wealth building is living in a decent-living house,” wrote Sarah Stanley Fallaw, director of research at the Affluent Market Institute, in her book, The Next Millionaire Next Door: Enduring Strategies for Building Wealth Business Insider reported.
Current generations tend to be smaller houses
However, as the WSJ explained, the trend has changed somewhat – many potential home buyers of today’s generation are now of a similar opinion to Shiller. They avoided large, ornate houses and opted for smaller, minimalist properties instead.
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