Builders Expand Home Size to Capture Multigenerational Trend
Daily Real Estate News, Monday August 18, 2014
As more generations pile under one roof, the median size of homes has risen by nearly 1,000 square feet in the last 40 years—from 1,525 square feet in 1973 to 2,491 square feet in 2013.
The resurgence of multigenerational living is in full swing as young professionals face greater “generational dependency” on their parents, Bloomberg/Businessweek reports. Also, aging adults are moving back in with their older children, which has caused the number of people squeezing under one roof to grow.
Inside the Multigenerational Home
A record 57 million Americans—or 18.1 percent of the population—lived in a multigenerational household in 2012, according to Pew Research data. That is up from 28 million – or 12.1 percent of the population – in 1980.
Builders are responding by launching home designs targeted at multigenerational home owners. For example, Toll Brothers is offering guest suites with a kitchen to better accommodate the trend. Lennar has launched a NextGen brand of floorplans geared to multigenerational living. The floorplans include separate main entrances and options such as a 500-square-foot attached suite for a private residence.
Lennar’s CEO Stuart Miller said earlier this summer in a conference call that “sales continue to benefit from the execution of our NextGen product strategy.” Sales of its multigenerational brand soared 58 percent in the second quarter. The builder offers NextGen plans in 201 communities nationwide, and the average sales price for NextGen homes is reportedly 39 percent above the company’s average.
Source: “The Sensible Resurgence of the Multigenerational Home,” Bloomberg/Businessweek (Aug. 13, 2014)