Builders tend to define themselves by their buyers. Who’s your target market? Move-up families with kids? Downsizing empty-nesters? Millennials? The creative class? People who love smooth jazz and wire-haired fox terriers? During the boom, psychographic preferences were parlayed into what builders hoped would prove to be market-differentiating features, from pet-washing stations to wine caves to poker dens.
But as we enter a new age of pragmatism, the goodies that were once deal-closers are backfiring. Fully loaded homes are unsellable now that buyers can’t afford houses built around their hobbies du jour. They’re no longer treating home as an ephemeral commodity to be swapped out with each life change or whim.
Instead, many homeowners are finding that what they really want are flexible dwellings that can expand and contract with them as their physical, relational, and financial circumstances ebb and flow. It’s no longer feasible to uproot when that second baby is born, when grandma moves in, when the kids leave for college, when one spouse launches a home business, or when the other gets laid off.
At the same time, builders looking to mitigate risk are realizing that in order to stay afloat, they must build smaller, less prescriptive homes that can appeal to a broader swath of the population—all the while value-engineering their plans to provide more bang for the buck.
But there’s a fine line between universal appeal and vanilla design, and the need to differentiate remains. How do you build something practical and compact that still feels special? Do you shrink the entire floor plan equally, or do you abide by different rules of proportion? How do you parcel out a limited construction budget to create the most value? And how can you make one structure work equally well for buyers at different stages in their lives and in different tax brackets?

Blue Heaven: The Propane Education & Research Council promotes the use of propane-fueled products throughout the house, starting with a 500-gallon residential tank buried in the front lawn. Topped with an unobtrusive landscape lid that enables fast and easy servicing, the tank supplies all of the home’s propaneusing appliances, as indicated on the virtual tour by a blue fl ame icon.
www.buildwithpropane.com
For answers to these questions, Builder turned to designer Marianne Cusato, who is perhaps best known as the creator of the original Katrina Cottage. Who better to ask? Disaster relief is what this beleaguered industry needs right now, and that includes a pro forma or two that skittish lenders will be willing to bankroll. Cusato joined forces with building scientist Mark LaLiberte, and came back with a no-nonsense plan that wastes little, appeals to many, and can be built just about anywhere.
Including on the Web. Unlike previous Builder show homes, this one isn’t a brick-and-mortar structure. It’s virtual. Why? Because the beauty of this versatile little house is that it can be configured in, oh, so many ways—more ways than we could possibly have space for in print. We showcase a few variations here, but for a full tour you can visit www.builderconcepthome2010.com.
Dollars and Sense
How much does our Home for the New Economy cost to build? Construction costs vary by region and the level of finish will greatly impact price, but Cusato estimates that the basic house can be built for about $110 per square foot, excluding land costs.
Simple Architecture
Let there be no doubt this is a smart little plan that faces the recession head on. At 1,700 square feet, the Home for the New Economy is essentially a saltbox with another box tacked onto the back. In other words, it’s uncomplicated massing that’s easier, faster, and cheaper to build—particularly from a framing and foundation standpoint—than a house with lots of bump-outs and undulating roof forms.

Side Benefits: HardiePlank and HardieTrim fiber-cement exterior cladding components from James Hardie satisfy the designer’s desire for durable and sustainable materials. The smooth-finish planks were specified with a 6-inch exposure while the 3/4-inch-thick trim is a simple yet substantial 5/4 board, also in a smooth fi nish. All components arrive with the company’s proprietary ColorPlus baked-on pigment technology applied in the factory for faster installation and finishing.
www.jameshardie.com
“Somewhere along the line, homeowners were told they needed 10 gables or they didn’t measure up,” says Cusato, whose book, Get Your House Right, lists this phenomenon among a litany of superfluous extras that end up devouring construction budgets.
“When you don’t have tons of gables, you aren’t putting money into extra flashing in the peaks and valleys of your roof, or in a patchwork quilt of different materials on the front elevation.”
Take away those expenses and you can spend more on features that serve multiple purposes—such as a deeper porch that doubles as outdoor living space. Or double-hung windows on all sides that channel natural light and allow cross-ventilation, thus reducing the burden on the HVAC system. Aesthetics alone aren’t sufficient justification for any one line item, Cusato cautions. There’s more value for the buyer in features that do double, or triple duty.
Apply the same value test to every other design decision and four-sided architecture suddenly becomes doable, she points out. Better to perfect one clean element—say a 6-foot window and trim detail—and repeat it consistently than to muddle up the face of the house with 10 competing pieces of eye candy that give the front elevation the fake appearance of a façade in the backlot of an old movie studio.
Core Components
Ironically, many of the “must-have” features that fueled the real estate bubble resulted in houses that were more expensive to build and maintain, but less functional and comfortable to live in. Take the ever-popular cathedral-height great room. Plenty of starry-eyed buyers were dismayed to discover that what they had actually mortgaged was an echo-chamber that was costly to heat and cool. And while the Palladian windows that so often adorn these spaces may look dramatic, they frequently produce glare and unwanted solar gain, prompting owners to close the drapes, crank up the A/C, and turn on lights.
Skimping on windows, however, is not the antidote to this malady, nor is dropping the ceiling to claustrophobic levels. The Home for the New Economy pairs 10-foot ceilings on the ground floor and 9-foot ceilings on the second floor with 6-foot, operable windows on every outside wall to promote even daylighting and passive cross-ventilation. It’s a win-win that reduces energy consumption while creating rooms that look terrific, feel comfortable, and breathe easily.
Another important rule of thumb for small building envelopes: Not all rooms are created equal. Communal spaces should get proportionately more square footage than bedrooms and bathrooms, because they get the most use and the most traffic.
Adaptable Appendage

Smart Storage: KraftMaid’s solid-wood cabinets feature a recessed panel on both the doors and drawers for timeless traditional appeal. The wall cabinets are finished with a small but distinctive cove molding and all cabinets are fi tted with satin nickel knobs and pulls. The home’s virtual tour showcases the company’s storage solutions, including a lazy susan for a blind-corner base, roll-out pantry trays, and a tiered, wall cabinet storage shelf to help optimize storage in smaller spaces.
www.kraftmaid.com
We all want play spaces in our homes when times are good. But when life throws a curve—a job layoff , a knee injury, or an elderly parent who needs assistance—the last thing we need is a house that makes life difficult because those spaces can’t be converted for practical use.
Enter one of the most critical features in the Home for the New Economy: the adaptable suite. When this module remains open to the rest of the fl oor plan , it can serve as a family room, home offi ce, or guest quarters. It can even become a full-time master suite for an older couple who want to age in place and eventually live on one floor.
But what truly makes the suite more than a mere bonus room is its ability to morph into an entirely separate residence. Its closet is rough-plumbed to accommodate a kitchenette; a back porch provides a private entry from the outside; and its party wall can be easily sealed off from the rest of house. Those small but signifi cant design moves give it the potential to be converted into an efficiency apartment for a boomerang child, or for an older live-in parent. In tough times, it can even serve as a rental unit for owners who need help in off setting their mortgage payments.
When a house can be tailored to accommodate multiple scenarios, it appeals to a broader cross-section of buyers and is more likely to hold its value, Cusato notes. “The fact that the adaptable suite is attached also makes it a more viable option for a small lot than a design that calls for a detached casita,” she adds. “You can share walls and still have privacy.”

Faucet Function: Classically styled yet perfectly practical, the Wynston dual-control faucet from American Standard features a polished chrome finish and a high, arching neck with a pull-down spray. The all-brass–built faucet stands up to prolonged contact with water, ceramic disk valve cartridges assure smooth handle operation and dripfree performance, and integral check valves prevent back flow.
www.americanstandard.com
Private Escapes
Everyone needs to retreat now and then, but that basic human need is often more about mental recharging and tranquility than physical space. A common problem in bedrooms isn’t so much that they are too small; it’s that voices carry. So do TVs, stereos, video games, and sixth graders who are practicing the clarinet.
In the luxury plans of the boom, this dilemma was often solved with a master suite jutting off from the rest of the house as its own wing. This configuration isn’t an option in compact plans, but comparable noise control can be just as easily achieved with a little extra insulation between bedroom walls and closets—an important specification in the Home for the New Economy.
Good sound attenuation, in turn, increases the range of potential uses for secondary bedrooms. One top-floor space might serve as a kids’ bedroom for a decade or two, only to be later converted into a library, studio, project room, or home office. The plan also includes a large area adjoining the master bedroom that can be used as a nursery, sitting room, toddler play room, home theater, or storage space.

Recovery Act: The ERV90 energy recovery ventilator from Broan combines controlled and balanced fresh-air ventilation while capturing heat from outgoing exhaust air and managing humidity levels. The system lessens the burden on the heating equipment and promotes better indoor air quality. It connects to the central air distribution system to serve all rooms (except bathrooms, which employ the company’s Smart-Sense fan system).
www.broan.com
Another important ingredient for serenity is light. And in this regard, our concept home acknowledges a key difference between the private and public areas of the house: Bedrooms and other retreat spaces are usually compartmentalized and closed off with doors, which makes them prone to dark corners. “Transoms are easy enough to install when you have space between the door frame and the ceiling, and they can bring extra light into otherwise dark places such as bathrooms by borrowing light from the stair landing and bedrooms,” Cusato points out.
Sweating the small stuff matters.
Promoting Propane: Several products in the house employ propane fuel, including the tankless water heater and furnace. The The Propane Education & Research Council promotes the use of propane energy as a reliable, affordable, and clean-burning fuel source for individual residences and communities that are off the natural gas grid. Look for the blue fl ame icon throughout the virtual tour to identify propane-using products.
www.buildwithpropane.com
Stand Up: A complete system of engineered structural lumber components from Roseburg Forest Products makes better use of timber resources and enables long, unsupported spans.
www.roseburg.com
Smart Spaces
It goes without saying that in a tight, compact plan, every square inch is sacred. Clutter control is important to keep small spaces functional. “Humans have things. There’s no way around it. And in a small space, the clutter will take over unless you think about how to manage it,” Cusato says.
The kitchen, of course, is the area of every house that is most in danger of being overtaken by mess. This one has a footprint just shy of 11 feet by 12 feet, but it’s a workhorse. Drawers and pantry shelves make the most of deep storage areas, while stacked upper cabinets take advantage of the ceiling height, providing top-level storage for items that aren’t needed every day.
A two-level island peninsula provides a casual eating bar, but also hides dirty dishes from view from the living and dining room.
Because the space is designed with simple geometry and standard measurements, it’s easy to upgrade for buyers who want premium fixtures and finishes.
Not So Weird Science
High-performance and green building objectives often overlap, but the primary mission of the Home for the New Economy isn’t to be green for green’s sake. It’s to produce a synchronized array of building systems that collectively produce the most efficient, comfortable, and economical structure possible.

Major League: A space- and fuel-efficient, 30-inch freestanding dual-fuel double-oven range headlines a full series of major appliances from Whirlpool. The smooth glass electric cooktop features five elements, while the propanefueled dual ovens—encompassing 4.3 cubic feet of capacity combined—deliver energy-efficient performance. The remaining appliances include Whirlpool’s counterdepth French Door refrigerator, Resource Saver 2800 dishwasher, and a 1.8-cubic-foot microwave oven with a concealed range vent.
www.insideadvantage.com
“It’s a performance-based approach rather than a prescriptive- or specifications-based approach,” LaLiberte explains. “It’s not a label you obtain via a checklist of components.” Rather, it’s a holistic composition that blends design and science.
The relatively small size of the home makes it easier and cheaper to heat and cool, and the footprint is based on standard dimensional lumber sizes, making it easier and cheaper to build, too.
In direct contravention of the recent trend toward oversized windows, this home specifies appropriately sized openings and positions them thoughtfully to achieve maximum daylight, reduce unwanted solar gain, and promote cross-ventilation. This strategy makes the house look better from the curb, with the added benefit of free air conditioning.
Then there’s HVAC, which, LaLiberte stresses, cannot be an afterthought. In the old days, most builders used 2x4 studs for their walls, fairly leaky standardized windows, and complex heating and cooling systems that were specified with no anticipation of how the house would perform. Apply building science to the same house (upgraded insulation, higher-performing windows, and good air sealing to reduce leakage) and you can greatly reduce the complexity of the heating and cooling system.
The Home for the New Economy uses 2x6 studs instead of 2x4s, allowing more insulation and enhancing the home’s thermal resistance. Housewrap guards against moisture intrusion and helps cut down on air leakage. With a tight building envelope, an efficient HVAC system can be sized appropriately.

Stacked Set: The Duet series of front-loading laundry equipment from Whirlpool is stackable, enabling a full-size washer and dryer to fit into a small space and save square footage. On the Energy Star–qualified washer, a 4.4-cubic-foot stainless steel wash basket features a six-point suspension system for quiet operation and large capacity. A built-in water heater and multi-cycle capabilities help save energy and water. The compatible dryer offers 7.2 cubic feet of capacity and a drying sensor that stops the cycle when clothes are dry to save time and energy. Together, the pair uses up to 40 percent less energy compared to conventional top-load sets.
www.insideadvantage.com
In addition, the specs call for a ventilation system that recovers energy from exhausted air and reuses it for heating and cooling. Such systems exchange stale, polluted air with fresh, filtered air with the obvious benefit of improved indoor air quality. But the less obvious gain is a ventilation system that reduces the burden on the HVAC equipment.
Consolidated wet areas further enhance this home’s efficiency. Kitchens and bathrooms are grouped together in the plan and stacked on top of each other, allowing shorter plumbing runs. That includes a washer and dryer neatly tucked into an alcove in one of the upstairs baths.
True, building science costs a little more upfront, but it offers many long-term returns, including better indoor air quality, comfort, and value, along with reduced maintenance, lower fuel bills, and less jobsite waste.
“It’s important to look at the pile of leftover stuff on the jobsite and realize that’s really a pile of money,” says LaLiberte.
Building simpler and more economically has other benefits, too, LaLiberte says. “A safer, more efficient, and more durable house provides fewer callbacks and a happier client, which in turn results, hopefully, in more referral-based business.”
Smart Windows: Andersen’s 400 Series Woodwright double-hung windows meet a host of objectives for the house. Tall windows placed on each of the room’s three walls reduce glare and enable ample yet controlled daylight throughout the day. Their placement and operable sashes also allow for passive crossventilation to cool the space without mechanical means, saving energy. Meanwhile, high-performance low-E glass reduces thermal transfer and UV light, and the frame, made of FSC-certified wood, is aluminum clad. The designer selected a simulated six-grille pattern for the top sash over a single pane lower sash.
www.andersenwindows.com
Occupant Behavior: The C-Bus home control system from Schneider Electric allows complete control of lighting and electrical devices to reduce energy consumption. Clever occupancy sensors activate the lights only when needed, automatically turning them off when the room is unoccupied. The sensors also can be used to turn off and dim lights or to open and close blinds and curtains to help reduce thermal transfer.
www.schneiderelectric.com
Building Blocks
Efficient floor plans will be critical to home building’s recovery, to be sure. But Cusato is careful to stress that no single house—not even one as thoughtfully designed as this one—is a panacea for the industry’s woes. “One of the big mistakes the housing industry made until recently was to treat buildings as single objects and not as having neighbors,” she says. Design differentiation was mostly concentrated at the unit level, and this nearsightedness came at a price.
“The minute you think about the house as part of a larger street composition, you start to see broader cost efficiencies because it releases the pressure on each individual home to stand out with its own patchwork of façade elements,” she explains. The value proposition becomes less about whether the home has a turret or bay window, and more about the total package.
“If we have learned anything from the McMansion and the credit crisis, it’s that a house cannot be expected to meet a person’s every need,” she says. “When you can find certain things within walking or biking distance of your house, such as the gym, a movie theater, restaurant, or coffee shop, then you don’t have to depend on your house to provide those things.”
Differentiation is still the key to selling new homes, but sales won’t be predicated on whether your model offers stone versus brick, or takes the other guy’s four gables and raises him six. Rather, the focus will be on giving homeowners a reason to buy new instead of the same old stuff—now available at rock-bottom foreclosure prices.
“A sustainable, adaptable house that’s part of a nice streetscape and located in a walkable neighborhood will always sell better than a foreclosed house in a ghost town that is miles from civilization,” Cusato says. “We have to offer people value, and we have to give them something they want that they can’t already get.”
Forward Thinkers
Many thanks to the sponsors who made our virtual concept home possible. This elite group of innovative building products manufacturers and suppliers stands at the forefront of efforts to develop more sustainable approaches to home building. Below is a list of these companies, indicating their level of sponsorship and the products that are recommended in the specs for the Home for the New Economy.
Designer: Marianne Cusato, Miami
Building scientist: Mark LaLiberte, Minneapolis
Website developer: Decision Counsel, Chicago
Virtual tour and renderings: BHI Media, Austin, Texas
Media relations: IWPR Group, New York
Interior designer: Room and Board, Minneapolis
Landscape designer: Christian Wagley, Alys Beach, Fla. Kendall Horne, Grayton Beach, Fla.
Foundation
American Standard (all plumbing fixtures and faucets) www.american standard-us.com
Andersen Windows and Doors (windows and entry doors) www.andersen windows.com
KraftMaid (cabinets and cabinet hardware) www.kraftmaid.com/cabinets/home.aspx
Propane Education & Research Council (underground propane tank and lid) www.buildwith propane.com
Whirlpool (major appliances, including laundry) www.whirlpool.com/home.jsp
Supporting
James Hardie (exterior siding and trim) www.jameshardie.com
Lumber Liquidators (wood flooring) www.lumber liquidators.com
Performance
Broan (energy recovery ventilator; bath ventilation) www.broan.com
Crossville (ceramic tile) www.crossvilleinc.com/index.html
DuPont Building Innovations (Corian and Zodiaq surfacing) www2.dupont.com/Surfaces/en_US
Inspire Roofing (roofing) www.inspireroofing.com
Johns Manville (insulation) www.jm.com
Kwikset (entry and interior door hardware and locks) www.kwikset.com
Roseburg Forest Products (structural framing components) http://roseburg.com/cgi-bin/s-mart.pl
Sherwin-Williams (interior paint) www.sherwin-williams.com/index.jsp
Schneider Electric (load centers, solar inverter, generator back-up panel, lighting controls, lighting occupancy sensor, and home automation monitor) www.schneider-electric.us
TimberTech (porch decking and railing, fence components) www.timbertech.com
Time Warner Cable (structured wiring to television, telephone, and computer) www.time warnercable.com
TruStile Doors (interior doors) www.trustile.com
Alliance
Atlantic Premium Shutters (exterior window shutters) www.atlanticpremium shutters.com
Beam by Electrolux (central vacuum) www.beamvac.com
The Chamberlain Group (garage door opener) www.chamberlain.com/corporate/en-us
Clopay Building Products (garage door) www.clopaydoor.com
Fiberweb/Typar (weather barriers, flashing, and erosion and root/weed control) www.typar.com
Generac Power Systems (standby generator and transfer switch) www.generac.com
Rinnai (tankless water heater) www.rinnai.us
Schulte (closet and garage storage systems) www.schultestorage.com