Multi-Generational Living

Demand for Next Gen homes is up

By Yardi Blog Staff on Jun 24, 2014 in News

The trendlines continue to point to a steady, albeit slow, recovery of the housing industry. Builder confidence in the market for newly-built single-family homes hit a significant milestone in June, surging eight points to a reading of 52 on the National Association of Home Builders/Wells Fargo Housing Market Index (HMI). According to NAHB, any reading over 50 indicates that more builders view sales conditions as good than poor.

“This is the first time the HMI has been above 50 since April 2006, and surpassing this important benchmark reflects the fact that builders are seeing better market conditions as demand for new homes increases,” said NAHB Chairman Rick Judson, a home builder and developer from Charlotte, N.C. “With the low inventory of existing homes, an increasing number of buyers are gravitating toward new homes.”

On a more personal level, the fluctuating economic market has resulted in a shift in consumer perspectives. The larger population seems be aware of the financial commitments attached to home-ownership and realigns priorities in order to achieve the much longed-for independence. In recent years we have witnessed the emergence of trends like shared housing and rent-to-own homes that aim to somewhat appease the effects of the recession.

Balancing entry-level pay with high cost of living and substantial debt is a major challenge which not many young adults are willing to take. Rather than struggling to make ends meet, college grads or adult children choose to move back with their parents, which can be a wise decision in the current context. Acting as a financial lifeline, this interim is an excellent opportunity for boomerang kids – as social scientists call them – to build a savings account, find stable jobs and start a family.

This change in consumer attitudes has also led to the comeback of multi-generational living. A Pew Research analysis of Census Bureau data shows that the share of Americans living in multi–generational family households

is the highest it has been since the 1950s. Adults ages 25 to 34 are among the most likely to settle for this type of living arrangement: in 2010, 21.6% lived in this multi-generational households, up from 15.8% in 2000 (the vast majority were living with their parents).

As for the move’s effect on family dynamics, a quarter of the respondents (25%) said the living arrangement had been bad for their relationship with their parents, while about a quarter (24%) said it had been good and nearly half (48%) said it hadn’t made a difference.

Lennar is the first national homebuilder to recognize the need of individual homebuyers and families to “double up” in order to share the cost of their mortgage and other living expenses.

Striving to adapt its housing models to the realities of our times, Lennar has created a revolutionary floor plan catering to multi-generational families. Dubbed Next Gen – The Home Within A Home, the house accommodates dual living arrangements featuring a single-family home plus a separate, private living space. The complementary suite includes a separate entrance – while preserving direct access to the main quarters – , living space, eat-in kitchenette, bedroom, full bath, walk-in closet and pantry.

Next Gen comes as a great solution for long-term guests, friends and family members who need a comfortable place to live in. It can be integrated into a home’s living space or kept as a private residence.

In addition to the financial benefits that it entails, many families find comfort in cohabitating. “Imaging having your parents nearby to help care for your children, or saving money on adult care for them because they live with you,” said Susan Wilke, VP Sales and Marketing for Lennar Central Valley. “Or being able to provide enough space for your child who needs to move in after college – now you can have all that and still have the size home you need for your family – it’s a home within a home.”

All of Lennar’s homes come with “Everything’s Included” features such as stainless steel appliances, granite slab kitchen countertops and upgraded European-style cabinetry throughout the home. In addition, residents will also enjoy several hi-tech energy-efficient features already included in the homes such as tankless water heaters, low VOC paint, radiant barrier roof sheathing, Energy Star® rated appliances and more.

Lennar’s innovative NextGen floorplan is available within hundreds of communities nationwide, including Tucson, Arizona more recently where the company acquired 108 finished residential lots. The new homes will be located in Star Valley, a master planned community off Camino Verde and Los Reales in the southwest portion of the Tucson metropolitan area.