Excerpt taken from Parade - May 7, 2007

Today’s new house is likely to be big - really big. With high ceilings, spacious closets and garage space for at least two cars, the average new home measures about 2,459 square feet - 50% more than its 1970s counterpart. And luxury details abound: kitchens equipped with flashy professional appliances are in demand, as are bathrooms with walk-in showers and separate bathtubs. To clear space for them, such houses are more likely to forgo fussy, seldom-used living and dining rooms in favor of large laid-back family areas.

New homes cost more too: A recent report puts the median price at around $250,000 vs. $200,000 for an existing house. The new “starter home” is a thing of the past. Yet, just when it seems the the thirst for square footage is insatiable, experts say it’s nearing its limits.

Now entering the market is a modest but increasing selection of smaller homes that substitute floor space for high-quality finishes and designer touches. These cozier homes can be squeezed onto smaller lots in dense city locations, making for shorter commutes. They’re also more likely to be built “green” and to save money: A 2005 study found that small homes with even so-so efficiency standards use much less energy than big houses built to the highest energy specs. Even mainstream builders are outfitting newly constructed houses with triple-pane windows, high-efficiency toilets and shower fittings, passive heating systems and tank-less hot-water heaters to corral utility costs.

The biggest reason for the smaller-is-better change is most likely dynamics: By 2011, it’s estimated, more than half of U.S. home owners will be 50 or older-and these empty-nesters won’t have much need for 3,000-square-foot McMansions.

Graying boomers may fuel another trend: two master suites. A survey by the National Association of Home Builders predicted that his-and-her bedrooms will become the next staple in custom homes. Romance isn’t at issue, though. Seems that, in many households, snoring is.