Larger single family floorplans are here, but could be built for multi- generational families. “The long term is definitely toward larger houses,” says Robert Denk, a senior economist for the National Association of Home Builders. He says new homes have gotten bigger since the 1970s, with temporary setbacks during recessions. Nationally, the median size of a new house is now about 2,400 square feet, up 17 percent since a low point in 2009. Denk says generational housing is only part of the story, though. “We’ve lost
a lot of
Homes in Augusta, Ga have already seen the transition with the average $150,000 home being around 1800 sqft in 2007 growing to 2500 sqft in 2010. Now, in 2013 it is not unusual to see a 5 bedroom, 3 bath home with 3000 sqft of heated space. the low-end buyers,” Denk says. “At this point, it’s only the higher-end buyers that are in the market at all, and so that’s what’s pushing the demand for larger houses.”
While the larger homes are built for the single family, now because of post-recession, the lack of jobs and adult children moving back home, plan to see the floorplans shift again. The plans will not just be large, but built for multi-generational families under one roof.
What does this mean for the low end buyers? Since plans will shift for multi-generational families, we can plan to see these neighborhoods, turn into shared housing, like upscale dorms or the traditional bed and breakfast. This trend is already being tested with a company called Collaborative Housing. This concept in Augusta, could also be seen as the rise of extended stay properties like the Homes 2 Suites by Hilton emerge.
Let’s face it. This will be a good thing for those that want to get into the multi-family rental investment business, but what will it do to the neighborhoods were these mutli-generational family housing will be located? Something to think about as you purchase your next home.