Millennial homebuyers seek elasticity, room rentals

Millennials have officially overtaken baby boomers as America's largest living generation. Those 75.4 million young people ages 18 to 34 are renting and beginning to buy homes. What do they want, and how will they change the way builders build?

First of all, millennials don't want more of the same. According to Linda Mamet, vice president of corporate marketing for TRI Pointe Group, a family of premium regional homebuilders nationwide, they have some fairly distinct cultural characteristics that are earning the attention of smart homebuilders. Mamet gets excited talking about the uniqueness of this generation and the homes that her group works hard to build for this demographic in California, Colorado, Nevada, Washington, Arizona, Texas and Washington, D.C.

"We've found that millennials tend to be very nostalgic about the homes that they grew up in and they maintain very close relationships with their parents," Mamet said. "As homebuyers, they are thoughtful and have planned well."

Because of the financial strains that exist for many in this age group, some are willing to approach purchasing a starter home in a slightly different way. Many millennials' salary is not enough for them to make a purchase on their own. Additionally, surveys indicate that most believe their lives will change a lot in five years. Buyers want elasticity that will match the uncertainty that they face professionally and personally. Many are coupling or grouping up with friends in order to buy.

Millennials are part of a sharing economy, and, according to Mamet, at least one-third of new homeowners rent out one room or more. Knowing this inspired a millennial concept home in the Las Vegas market called the Responsive Home in Henderson, Nevada, built by Pardee Homes, a member of TRI Pointe Group. The production version of the concept home is Strada. Both are part of a community called Inspirada, which is settled among 85 acres of walkable pathways, open spaces and multifaceted interactive parks. It is a suburban answer to the desire for shared community experiences. Priced originally in the upper $300,000 range, the core design premise is flexibility, indoor/outdoor living and multigenerational living. The plans offer a model with a lockout suite, and some include two suites ready to rent or be used by an older relative, sibling or co-worker.

Outdoor spaces like this courtyard are very desirable as a way to augment living space. In the Northwest and New England, overhead heaters are common. In the sizzling heat of the Southwest, ceiling fans and misters are standard. Fire pits and fireplaces are popular everywhere. This courtyard allows for two families or roommates to either entertain at the same time without interfering with each other or join together in celebrations.

Strada offers three floor plans that include models with four bedrooms and three-and-a-half bathrooms, including some with a downstairs master suite. The size of the homes range from approximately 2,493 to 3,260 square feet. In order to fit four bedrooms, a few tricks are needed. In general, open and flowing spaces are preferred by millennial buyers. Builders find that downsizing a master bedroom by introducing a raked ceiling or maximizing window placement can create an impression of more space. Eliminating the bathtub in the master bathroom is another way to shrink square footage.

The goal in designing easily changeable floor plans is to expand the range of those who can afford a new housing development. The Federal Housing Association now allows rental income to be counted in loan calculations, which helps enabling a new type of socioeconomic buyer: the working millennial. Contrary to a lot of negative stereotypes floating around, many in this generation are thrifty and serious. They may not all have huge salaries, but they know a value, and they know how to save and budget.

Christine Brun is a San Diego-based interior designer and the author of "Small Space Living." Send questions and comments to her by email at christinebrun@sbcglobal.net.

© 2017, Creators Syndicate