Having “too much space” might seem like a very nice problem to have in retirement, but, for many of us, living in a big home is actually draining our happiness.

For some, living in a large home once the kids have flown the nest is a drain on our precious financial resources. But, for others – the 1% of retirees who will genuinely never need to worry about money – living in a large home is still an emotional and physical drain.

The problem for affluent retirees is that, while many of them would like to live in smaller homes, they aren’t keen on sacrificing the luxuries that they have become accustomed to. They still want their expensive kitchens, pools, saunas and ocean views. And, until recently, there just weren’t many ultra-luxury small homes on the market.

Well, if Frank McKinney’s latest building is any indication, the tiny house movement is about to invade the luxury real estate market in a big way. And, when you see the images below, you may just find yourself wondering, why it has taken so long for this trend to gain traction.

Mini-Mansions for Retirees

Tiny Houses for Big Budgets? A Ridiculous Comparison?

Frank McKinney’s concept is simple. He believes that many affluent Americans (those with $10-million or more to spend on a property) would prefer to live in an ultra-luxury residence that is half (or less) of the size of a “real mansion.”

His latest project, Salacia, is a 3.5 bedroom, 3.5 bathroom home in Ocean Ridge, Florida, is an early entry into the market of “mini-mansions”… and one that is likely to turn a few heads!

Mini-Mansions for Retirees

In an interview with Mansion Global, McKinney said,

“Many buyers are now plunking down $2,000 or $3,000 a square foot for condos in Miami… They would pay that [in this part of Florida], but there’s nothing like that up here. I’m banking on the fact that they will appreciate a smaller house.”

So, what does all this have to do with tiny houses? Isn’t a mini-mansion something entirely different?

On the surface, it might seem ridiculous (even insulting!) to compare the “mini-mansion” trend with the “tiny house” trend. After all, who in their right mind could call a $2.3-million, 3.5-bedroom home tiny?

But, if you dig a little deeper, both trends share similar psychological drivers. Baby boomers, who control the lion’s share of the real estate market in the United States, are approaching a stage in their lives when they appreciate quality over quantity. Many of us, regardless of income, are downsizing. All of us, in one way or another, are dealing with changing social circumstances and rethinking our “empty nests.”

Mini-Mansions for Retirees

A 3.5-bedroom house might seem huge to someone like me who has, by choice, spent the last 5 years in a studio apartment. But, to someone who raised their kids in a 6-bedroom, 6-bath mansion, it will feel tiny indeed!

Real-Estate Developers Are Just Starting to Wake Up to the Needs of Retirees

From my perspective, the “mini-mansion” trend is just one piece of a larger real-estate rush to meet the needs of retirees.

Retirees around the world are looking for creative housing solutions that can help them to reduce their costs, stay social and improve their health. Already, there are co-living spaces just for older adults opening in the U.S. and the U.K. And, many seniors, like these 7 women in China and these 2 women in Japan are pooling their resources to purchase and renovate older properties to use in retirement.

Real-estate developers better move quickly. With over 10,000 baby boomers reaching age 65 every single day, there is a massive need for new housing solutions at every end of the income scale. From true “tiny homes” to “mini-mansions” and everything in-between, the race is on!

What do you think of the idea of “mini-mansions” for rich retirees? If you had millions of dollars, would you choose to live in a large home, a mini-mansion or a luxury condo? Why?

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