Builders report that more and more people are judging a new property on its running costs and practicality rather than wanting bigger and fancier buildings.
Although the property market in the US is depressed the National Association of Home Builders predicts that 420,000 new homes will be built this year and many of them will go to budget conscious first time buyers.
They're trying to stretch their dollars at every turn, and many are concerned about the cost of heating and cooling, especially after having experienced the surge in fuel costs last year.
Builders say buyers are judging a home in terms of how comfortable it will be as a living space for the long term, rather than as an investment they can flip for a profit after a couple of years.
Figures from the NAHB shows that the size of new properties is falling and 90% of builders say they are building smaller homes with 89% building lower priced houses.
Diana Van Stone of Atlanta based Beazer Homes said the company is now paying more attention to energy-conserving and environmentally friendly features such as efficient appliances, programmable thermostats, compact fluorescent lights and paints that emit less toxic fumes, all of which are now standard features.
'Our homes are offering what we feel the public is moving toward. People's priorities have changed. Now it's not only about living in the home with my family, but whether I can afford it in the long run, being able to truly afford it,' she said.
Fairfax-based Brookfield Homes is taking the smaller-and-greener trend the further. It has set up an energy lab in one of its model detached smaller homes. The house has a small wind turbine and solar photovoltaic panels on the roof, both of which generate electricity. There also are solar collection tubes on the roof to heat the home's water supply, and a geothermal heat pump to provide heat and air conditioning.
These smaller houses accounted for about 65% of sales over the past six months according to sales manager David Poole. 'Because of the economy people are not buying huge houses,' he explained.
Other factors being taken into account by builders is to put windows on all four sides which gives an impression of space, insulating well, and using good quality finishes such as hardwood floors, granite worktops and fitted kitchens as standard.