The McMansionization of America? Income stratification and the standard of living in housing, 1960–2000

Consumption patterns and living standards are relatively neglected in stratification research even though they are important indicators of material well-being. Consumption inequality is related to income and wealth disparities through complex processes not yet well understood. This paper addresses this gap by analyzing a striking shift in the standard of living in housing in the US that occurred at the same time as a substantial increase in income inequality. Houses became significantly bigger in the 1980s and 1990s just as inequalities deepened, reversing an earlier trend towards smaller houses. Diverse theoretical traditions in the consumption and housing stratification literatures explain this shift differently, and in particular posit very different effects of rising income inequality. I derive several alternative expectations from these traditions: two predicting that the increasing size of houses was broadly shared across income levels, while another expects it represented increasing divergence in living standards, paralleling the trend in income inequality. I use US Census and American Housing Survey data and several different methods to adjudicate between these theories. The results provide some support for each of the alternative expectations, but the most significant finding is that big house ownership became more concentrated among the affluent. A focus on living standards thus uncovers a key source of rising disparities at the turn of the 21st century with important implications for wealth stratification too since houses are the major debt and asset held by most Americans.