For much of the twentieth century, homes in North America steadily increased in size. This occurred simultaneous with urban sprawl, as the automobile and freeway investments allowed increasing numbers of families to afford ever larger homes.

2006 brought increasing evidence that this trend is reversing. Many individuals and families are choosing smaller homes. Moreover, a wider variety of housing choices are available and being selected by people at all income levels.

There are a variety of reasons for this. The biggest is that urban sprawl in many cities has reached its limit. While some cities have geographical constraints limiting sprawl, others have now reached other limitations including psychological. There are limits to how far people will commute (and with most urban areas heavily reliant on automobile transport, there are definite limits to freeway capacity in a region).

Many people are asking themselves if the larger house in a suburb is worth it if they spend 2-3 hours per day commuting. Some working parents might only see their children at bedtime and weekends with this type of schedule. For those without children, or empty nesters, such a commute takes time away from other pursuits. Thus, we have a psychological constraint — or “practical constraint” — on urban expansion.

Another reason for people in cities choosing smaller homes: the lifestyle question. While some individuals and families are passionate about gardening and maintaining the interior and exterior of a home — others would rather be enjoying other pursuits. Therefore, townhouses and condominiums are attractive options.

Related, people are placing increased value on their time. In deciding where to purchase or rent a home, individuals and families look at commuting time to work, and community time to favourite leisure activities (whether restaurants to visit with friends or sporting arenas or the beach).

North American culture of the 21st century is becoming more individualistic, or at least generation x and the milennials are feeling like they don’t need to aspire to own the “white picket fence dream.” ANd many won’t chose that if it means giving up other aspects of their lives, such as recreation or time with friends. Very well-off families are choosing to raise children in downtown condominiums. One former-colleague paid nearly $1 Million for his spatious 3 bedroom condominium with large outdoor patio. He loves being able to walk to work. His wife loves all the nearby amenities ranging from quality food stores to parks and recreation areas for kids.

CEOs for Cities recently commented on a New York Times article about the growing number of upper-middle class families choosing to live in dense areas of New York City, rather than spatious homes elsewhere.

Downtown revitalization and inner city neighbourhood gentrification are part of this trend toward embracing smaller homes. And, with environemental concerns on the rise, this will only add further fuel to the trend.