The stereo-typical mansion is one that is a true palace, with servants, guest quarters and secret passages. But even though the average American home has swelled from 983 square feet in 1950 to 2,349 square feet in 2004 -- a 140 percent increase in size, the typical luxury home is not necessarily a monstrous estate.

According to the annual First Republic Bank Index of luxury homes, in 2005 the typical home sold for over a $1,000,000 was 3000 to 6000 square feet, with three to six bedrooms, and three to six bathrooms. This follows data from the National Association of Home Builders, which indicates that the average new luxury home has approximately 4000 square feet.

The U.S. Census' survey of Construction reports that 0.5 percent of new homes constructed in 2004 and 2005 were 6,000 square feet or larger (that might not seem like much, but that's still 10,000 homes!) Another measurement that is often overlooked in affluent housing isn't the square footage of the home, but the home's volume. A home's volume takes into consideration vaulted ceilings, open archways, and ceiling height, which is not accounted for in a square footage measurement. Even a relatively small luxury home can feel massive because of its overall volume. One of those custom homes is the National Association of Home Builders dream home. The 2006 Dream Home includes over 10,000 square feet of living space and features vaulted ceilings.

The trend towards building larger custom homes has been dubbed by the press as building a "McMansion," and by others as building "garage mahals," "hummer houses," or "starter castles." The debate over the size of homes has caused some communities to argue for limits on the size, and style of homes. For instance in Pitkin County Colorado, home to Aspen, they are considering a 15,000 square foot limit on homes, since a Saudi Prince built a 55,000 square foot mansion. Even areas that have been actively encouraging the construction of larger homes have begun to rethink their position. In DeKalb County Georgia, which includes Atlanta, this came to a head when a developer built a replica of the White House!

But the assumption that all luxury homes are large homes is false. Consider when you stay in a luxury hotel, are the rooms always bigger? Or is it possible that the room and hotel itself may simply be of higher quality and well-appointed with luxuries amenities? Luxury buyers agree and point out that in the end quality -- not size -- is the driving force in determining a home's desirability.

Published: July 7, 2006

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Jim Remley is a speaker, author, and consultant. He is also an active real estate broker in Southern Oregon where he owns a network of six offices. Jim won the Rookie Instructor of the Year award in 2001 from Realty-U, the largest network of real estate educators in the nation. He was the winner of the 2002 Pacesetter Award, and nominated for the Real Estate Instructor of the Year Award during the first quarter of 2003. To learn more about Jim, please visit ProPerformer.com or e-mail him at .