IStock Photo 5805954 © jhorrocks

The McMansion. The Garage Mahal. The Starter Castle. The oversized home that fed the palates of suburban American Dreamers in the 90’s, and became a symbol of the nation’s excess, is finally shrinking. The average new American home, which grew from 1,500 square feet in 1970 to 2,300 in 2001, is now only 2,065.

In recent years, many Americans with the means to indulge their desires added on or traded up. In 2007, during the McMansion’s prime, it seemed like examples of buyers and developers gone wild could be found in neighborhoods all over the country, including a reproduction of the White House—complete with Oval Office and Lincoln bedroom—in the North Druid Hills section of Atlanta. Even Americans of more modest means appeared to have acquired more elbow room. The 2007 American Housing Survey conducted by the US Census Bureau reported that 1 in 1.17 (85%) occupied American homes had a porch, deck, balcony or patio,1 in 2.05 had a separate dining room, 1 in 1.53 (65%) had a garage or carport, and 1 in 3.34 had 2 or more living or recreation rooms.

Since the square footage downsize began in 2008, homes have shrunk an average of 7%, roughly the size of a small room. No one knows for sure why they’re shrinking. Some experts believe Americans desire a higher standard of living that emphasizes quality over size, but others argue the recession has forced Americans to downsize.

Before the recession, most Americans wanted for very few basic necessities. According to the 2007 American Housing Survey, almost all homes had potable drinking water (1 in 1.1 or 91%), satisfactory police protection (1 in 1.11 or 90%), no litter on their streets (1 in 1.13 or 88%), and satisfactory nearby shopping (1 in 1.09 or 92%). Over half of the occupied housing units in the US were located in an area with public transportation (1 in 1.87 or 53%). 1 in 1.02 (98%) had complete kitchens, and two thirds (1 in 1.57 or 64%) had central air conditioning.

But even in the age of the Hummer™ house, there were Americans living without even basic necessities or a minimum level of comfort. In 2007 1 in 12.48 had unsafe drinking water and 1 in 2,050had no electrical wiring. A surprising number had exposed wiring (1 in 102.3), and 1 in 102.2 homes had holes in the floor. 1 in 18 housing units were located in neighborhoods in dire need of street repair.

A new Census, slated for release at the beginning of 2010, will tell us more about how the economic downturn has changed the way we live. According to figures released by the US Department of Housing and Urban Development, privately owned housing starts were down almost 30% from August 2008 to August 2009. Just as tear-downs and add-ons were marks of the real estate boom, foreclosed homes and for sale signs are hallmarks of the recession. For the Atlanta developer who constructed the 165,000 square foot White House replica to serve as his home, there’s no question the recession is bringing about dramatic shifts in lifestyle. Early in 2009, deteriorating economic conditions forced him to put his house up for sale.