The $64,000 question: Could you live in an 800-square foot home?
Filed under: Bargains, Home, Real Estate, Simplification, Mortgage Confidential
Everyone likes a little room to stretch out at home, but with the new homes that KB Home is selling, that may be a little difficult.
As new homeowners look to find a mortgage that fits their budget, instead of buying as much home as a lender will let them qualify for, they may want to look at the compact two-bedroom, one-and-a-half bath houses that KB is selling for $64,000 in three suburban subdivisions in Houston, according to BusinessWeek. These tiny homes are 880-square feet.
The home builder is trying to compete with low-cost, bank-owned properties, which account for one of every three homes sold in Houston and nationally. If the Houston homes sell, KB plans to build the small homes in other cities and will target renters.
KB chief Jeffrey Mezger told BusinessWeek that the small homes are a return to his industry's roots in post World War II communities, such as Levittown, N.Y., where 800-square feet was a typical size.
"Any time there's been an age of exuberance and then the economy turns, people get back to 'What do I need?' rather than 'What could I buy?'" Mezger said.




Reader Comments (Page 1 of 1)
3-02-2009 @ 4:49PM
DENNIS said...
I WOULD'N LIKE TO LIVE IN A LARGE HOME, TURLY, THAT ALOTS OF SPACES FOR ANY ONE TO LIVE AT, BUT THE QUESTION IS THAT ANYBODY CAN IN JOY A HUG PACES OF LAND LIKE THAT AND PERSONLY I WILL, IT WILL BE A GOOD THING MORE THAN A BAD THING, I WISH TO HAVE THE HUG PACES OF LAND LIKE THAT, ANYBODY WOULD LOVE IT, I,M JUST SAYING THAT OF PLACES LIKE THTA WILL BE VERY SWEET FOR ANY ONE TO IN JOY, SO I WOULD IN JOY THAT PACES OF LAND, THATS MY COMMENT FOR TODAY, THANK FOR ASKING, YOUR FRIEND DENNIS CARTER.
Reply
4-07-2009 @ 7:08AM
Brenda said...
Dennis, Are you on drugs? Or are you just not in command of the English language? I hope and pray that you are foriegn born, and that English is not your first language. Otherwise, our school system has failed you misserably!
3-04-2009 @ 1:33PM
Elaine said...
I have lived in a 940 sq. ft. cabin, 75 steps straight up a mountainside, since 1971. I'll be 70 this month, and there's not a doubt in my mind that one of the reasons my general state of health is so good, is that I never did what my friends always suggested: install an elevator. But the size of the house is more than adequate for 2 people, 2 dogs and 2 cats. As far as I'm concerned, I live in heaven. Anything larger?...Why would I want to clean more rooms than I already have?
Reply
3-04-2009 @ 3:06PM
Beaula said...
It's about time!! One of major problems making up the real estate debacle has been the lack of "starter homes," the smaller homes KB is building. This is great! It will help many people get started in home ownership. Granted, it's cozy, but there are good points about that, too. Those of us who grew up in such homes can remember a fair number of good times that far surpass the space restrictions.
Reply
3-04-2009 @ 4:26PM
Bryan said...
I've lived for the past few years in a 1920s-vintage ~500 sqft house - and I think it's fantastic. Before we moved in, I got a little apprehensive about it, worrying that it would be too small, but after the first day there, it was just great (granted, we have no kids). Being smaller, I find I appreciate it even more than when I lived in my former 2000sqft house. I think in general, the less I have, the more I'm aware of and appreciate those things I do have. When I look back at my old house or visit friends with bigger houses I now feel like, wow what opulence, who needs all that. Plus now, I can clean the entire place top to bottom in an afternoon, the heating bill is low, I never lose anything in it, and since it's cheaper, I can own it outright - no mortgage. Downsizing can seem worrying at first, the first thought of it even feeling claustrophobic, but give it a try, it's completely worth it! I'm much happier now in my smaller place.
Reply
3-09-2009 @ 6:51PM
KB Investigation said...
Are you the owner of a KB Home? You might be the victim of an appraisal scheme costing homeowners thousands.
I work with a law firm investigating allegations that KB homes fraudulently sold new homes at inflated prices through pre-determined appraisals. Reports allege KB Homes worked with Countrywide’s appraisal subsidiary, LandSafe, to inflate the appraisal values given to new KB homes.
KB benefits from the higher purchase prices while homeowners suffer huge losses. If you are a homeowner, join the investigation by sharing your experience. Visit www.hbsslaw.com/kbhomes .
Reply
5-14-2009 @ 7:19PM
Houser said...
WE, too, bought a KB home which was falsley appraised for far more than it should have been. We had to wait 8 months for it to be built in which time property values dropped. We closed the escrow only to find that KB was selling the same house for $375,000. less than what we paid. And at that closing, their sales agent knew about the price adjustment and did not offer us the same price that they asked of new buyers. Feeling totally cheated, we only stayed in the house 5 months, notified Countrywide that they could have the house back, quit making payments and moved out. It is now in foreclosure and they have destroyed a perfect credit score and a senior citizens dream. No one is giving us back our money but Countrywide is being bailed out. Where is the justice in our system?
3-11-2009 @ 12:50PM
patti Smith said...
When my husband and I married in 1972 we used our VA loan to buy a new 900 square foot home. It cost $21,695. It had 3 BR and 1 bath, a large yard and a 2 car garage. It was all brick. We felt we were supremely blessed and very comfortable. We remained there for 5 happy, affordable years. For several of those years I provided home day care in our home for neighboring families. Happy homes come in all sizes.
Reply
3-10-2009 @ 7:48PM
RLQFogarty said...
Honestly, I know I'd be just fine in a small home - 800 sq. ft. or so. Growing up in a family of 8, our home was probably under 1,000 sq. ft. We did just fine. In fact, it was a good thing for us. We learned to give and take, to negotiate t.v. channels, to find fun outdoors at times, and to simply appreciate one another a little more. What I see happening with larger homes is that kids are all in different rooms or different floors than their parents or eachother. Conversation is limited to dinner time or no time. Kids then begin to rely on friends for conversation and advice rather than feeling comfortable enough with parents and siblings to talk things through. I credit my experience in a small home to having a wonderful family to date. We are still close even with some of us living out of the general area of the others. In addition, living in a small home is definately much cheaper. Less of an air conditioner bill, water bill, mortgage...And, it's less to keep clean as well. Considering families today are stressing over little time with family and the cost of living becoming more expensive, a small home would be a perfect answer to those issues. Therefore, if you ask me, I'd say a small place is a good thing.
Reply
3-20-2009 @ 8:48AM
Margie said...
I sold a 4000 sq ft home where I raised my family and moved into a 850 sq ft condo. I loved it!!!! My dog (Prissy) and I enjoyed one level living and layout was great!!! Low maintenance, low utility bills etc.
By the way, I am a Realtor :)...Have a great day!
Reply
3-27-2009 @ 12:13AM
Linda Claudine said...
I HOPE THIS IS NOT OFF POINT OF BLOG TOPIC AND APOLOGIZE IF SO - FIRST TIME HERE. I am all for a smaller eco footprint (800-900 is MORE than adequate). That is something I don't see mentioned. I don't know anything about KB homes. I know exactly what I want however. I want a modular practically maintenance free home off of the grid. Solar panels, wind, rain collection system, water recycling system, part of the house (north - most likely just bottom story) built into the hillside. I am constantly trying to learn more about the various ways to heat and cool especially in nontraditional ways that don't iimpact our planet OR my pocketbook but still keep me comfortable. I already have the land thanks to the love of land my grandparents possessed. When they were able they purchased farm outside of the then small town we lived in and it was their daily get away. My grandpa still worked his 7-4 job & grandma did not have had trad. job (ex. during WW2) but she WORKED. There is natural springs underground & my dream part is a small lake (1/4 of levy built already by grandpa as he had same dream & other lake he built was for lifestock and is not (thank God) on my part of the property). I crave info. about ALL eco aspects as want to sell my home in Houston and come back to beautiful southern ILL (25 e. of St. Louis).
Reply
3-31-2009 @ 11:13AM
Joe said...
The principle reason mom has to work in most families is the outrageous cost of a house. I grew up in an 800 sq ft home in Southern California. The size of the house had no negative impact on my life. My father was a working man. His modest income was still enough to buy the home and pay the bills without building up debt. We didn't need a second car.
Mom did the shopping when Dad was home. Most of the fluff electronics touted today such as cell phones for personal use (kids kon't "need" cell phones) are purely excess.
Cut back on "lifestyle" and increase life.
Reply
4-06-2009 @ 11:43AM
skooli said...
WARNING: THE DEVELOPMENT WITH THOSE HOUSES TO SOON BE FILLED WITH UNDESIREABLE RIFF RAFF!!!
Reply
4-09-2009 @ 4:44PM
Dirk said...
I could easily live in an 800 sq. ft. home, since my house is smaller, although I admit, I have a large storage barn.
I think the increasing size of houses over the last 40 years has been a waste in materials and energy. After fixing up one small house years ago and selling it, I moved to an area where I wanted a newer house, that needed no fixing, and I ended up not being able to find anything under 1500 sq. ft.
I would have jumped at an 800 sq. ft. KB house for $70,000 with no land. I've been in KB homes, and they would probably be helped by being smaller, since they are very plain. In a small house, plain looks better. Looking forward to seeing photos of this particular home.
Reply
4-16-2009 @ 7:53AM
mssalty said...
A lot of senior citizens live in homes that are smaller than that... they are called park models.. i myself lived in one in the winter for 6 months of the yea for 9 years... we loved it. but like the small cars they are building ppl will get tired of them in the years to come.. they wont like them in the winter months after a few years... i hate small cars....
Reply
4-25-2009 @ 11:37AM
salome said...
LM@O ! same as many others reading this crap. 880's tiny ?
Plenty out here grew up in 2 bedroom apts,1 bathroom,1 closet,kitchens consisting of a stove/sink and a couple of cabinets--living room-- with families of 6,8,members......and did fine,and never thought a thing about it .Grew up with the parents in their bedroom,daughters jammed in the other 1 and the boys in the "living room" on high risrs,castRO convertibles and everything put in order before 8am---and like another poster said--you always went outside/downstairs with your friends to hang out,talk,play,apartments were not bedlam---crowded but not a mess and when there were your friends,your brothers and sisters friends all upstairs-- ! -but everybody got the hecK out before the adults(always your aunt or neighbor was with your mother in the evening,sitting a minute after work)--would find something for you to do.
Amazing how we all fit in those tiny apts,kept everything clean,grew up happy and healthy.
Reply
5-11-2009 @ 12:36PM
michelle said...
I'm glad to come across this post. I've been looking for a small home in Texas for a while and all I find are nasty fixer uppers that look like money pits. I currently reside in a 400 square foot apartment with my husband in brooklyn. I wouldn't call it amazing or easy but I do have financial peace of mind as the rent is affordable. The small space forces us to keep organized and our utilities bill is usually 100 dollars a month including electricity, water and gas. I also save on decorating and clothing as we don't have lots of storage space. Whenever I see a home show with a single person asking for a walk in closet and 2,000 square feet of space I wonder if anyone is thinking reasonably at the moment. How is such a lifestyle sustainable? I don't agree with a previous poster stating such a neighborhood would soon turn negative. We are not "undesirable riff raff"- just poor. We pay our bills on time, our taxes every year and we try to use local businesses so we keep our money invested in our community. NYC real estate is nutty- an 800 square foot home in Brooklyn would sell for a million dollars easy- even in the middle on this current fiscal crisis. As long as the neighborhood has good schools, reasonably low crime rates (can't hope for more) and easy access to parks and supermarkets I see many young families like mine jumping at the chance to start their American Dream.
Reply
5-26-2009 @ 8:15AM
Elizabeth said...
It's just arrogant to assume there is anything wrong with small scale living. Im just back from 3 weeks in Germany UK and Holland where we enjoyed many a "cozy" (read: tiny) place to hang our hat... and then we were thrilled to come home to our "cozy" (read: tiny) and very affordable house on a gorgeous lake in Northern California. We get to travel all we want, in part, because we are not slaves to supporting a giant and expensive house. Plus, when the revolution starts, it will be safest to be in an (apparently) modest house with your guns, gold and seeds in the basement. The mobs will rob the obviously rich first. Think "Brown Paper Bag" with your assets and you will fare far better. Have a great day. :)
Reply