Today's homebuyers are thinking much smaller than buyers during the housing boom.

The era of the McMansion is over, according to the 2011 edition of "Emerging Trends in Real Estate," co-published by PricewaterhouseCoopers and the Urban Land Institute. Not only are baby boomers downsizing to more manageable homes, but first-time buyers are also entering the market with extremely different tastes than their parents. The younger generation of homebuyers, born between 1977 and 1994, are interested in smaller homes in vibrant, compact, walkable neighborhoods. While this new trend in housing will help revitalize urban cores, it also creates a problem: As baby boomers move into smaller homes, who will they sell their large, suburban homes to? We could soon see a glut of large homes languishing on the market.

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• Are tiny houses the new American Dream? Learn the pros and cons of living in a smaller home.
• Get 10 steps for downsizing to a smaller home
• Get tips for buying a home in 2011 from our House Hunters Homebuying Guide
• Sell your home fast and for top dollar next year with tips from our Home Seller's Guide