The housing market crash caused stagnation in real estate sales all across the board. In an effort to try and regain some sales at the higher end of the market, some developers have decided to try a new approach. Instead of building expansive mansions for the wealthy to purchase as their second homes or vacation homes, builders are focusing on smaller more manageable getaway locations that cost 1/2 the traditional price.
One area of interest for developers is Turks & Caicos in the West Indies. This destination hot spot was once on the rise as a must visit local for the wealthy. At the height of the housing boom in 2006, a custom home ranging in size from 2,800 to 4,000 square feet would traditionally cost an estimated $2.5 million. The new model for development offers smaller homes ranging in size from 1,800 to 2,800 square feet starting at $1.4 million. The reduction in size and cost has acted as a magnet re-drawing interest from the cautions upper sector of the financial spectrum.
Another area of interest for developers is in central Florida. Florida was one of the hardest hit areas in the nation. The amount of foreclosures and seemingly endless decline in home prices almost decimated the middle class housing sector. It has taken time, but Florida home builders are taking the same business model that was applied in Turks & Caicos into the peninsula state. Prior to the housing crash within some of Florida’s most prestigious communities it was normal for a new home buyer to spend as much as $2 million on a 40-acre ranch with a custom home. These same ranches are now being carved up into bite size cream puff cabins that start at $600,000, and come in at a quaint 1,500 sq. ft.
The tightening of the belt is not only for the middle and lower class of society. The recession and sluggish economy has even caused the affluent to slow their excess and “settle”. The slow to rebound economy has had a great negative affect on the housing market as a whole. It will take some time, but rest assure that once the economy starts to soar, America’s affluent buyers will once again begin to seek out larger and more prestigious properties.
Bryan is a member of New Homes Section and a proud contributor to its blogging network. 
Vacation homes? I don’t think this is such a good idea taking into account that most people struggle to pay their (first) home and some to even buy a home.
I’m sure the rich will go back to their old spending habits. We’re seeing a lot of vacation home buyers snapping up bargains here in Las Vegas already.
The title of the post made me smile “affordable” and “affluent”. I’ve always wondered about Turks & Caicos. It looks so beautiful and I haven’t had a chance to visit yet.