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Homebuilders Adapting to the ‘Family’ Business

by Chicago Agent

Multigen housing, which can accommodate members of older and new generations, is on the rise, and builders are taking notice.

Apparently, academics and media outlets aren’t the only ones following Pew research polls.

After releasing a study in October on multigenerational housing – which reported that in the last 30 years, 23 million Americans have transitioned to multigen housing, more than 51 million lived in such accommodations in 2010, and in the last 10 years alone, multigen families have risen by 30 percent – it appears that builders have taken note of the property type and are tweaking their business models.

Pulte Group, KB Home and Lennar Corp. are just three of home builders that are now offering home models with second master bedrooms, kitchenettes and even separate entrances for larger, multigen families, according to the Bloomberg piece.

Stephen Melman, the director of economic services at the Washington-based National Association of Home Builders, said that multigen housing is a niche market that is growing, so it makes sense for builders to appeal to its base.

“This is a niche area that appears to be solid and growing,” Melman said. “It’s a demographic thing.”

Megan McGraph, an industry analyst with MKM Partners, echoed Melman’s statement, saying that multigen features could be the special feature that entices potential homebuyers to buy new, rather than existing, home models,

“When builders are still fighting for every sale, hitting on something that resonates with your local demographic can make a difference,” McGrath said.

One example the article cites is of Kevin Barnes, a Florida resident who bought a multigen home with a second master bedroom for his mother-in-law. With her now a part of the house, Barnes said he no longer has to pay for childcare every week.

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