Multi-Generation Homes (2024)

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Multi-Generation Homes (1)

The lowest floor of this design includes a separate apartment be

If you’ve noticed homeowners adding rooms and remodeling basem*ntsand garages like crazy to create in-law units (also called accessory dwellingunits [ADUs], backyard cottages, casitas and granny flats -- Plan 926-4, above, has an apartment), you’re not alone. Developershave noticed, too, and some are building new multigenerational, multi-use homesthat include in-law suites and/or Airbnb rental rooms in the home. (See the layout forPlan 926-4 by Oakhurst, below). And expertssay the trend isn’t going to slow down soon.

DemographicDrivers
According toCBS MoneyWatch, the trend of U.S. families at multiple economic levelsmoving back in together to save on housing expenses began with the GreatRecession. The trend has continued as more and more Baby Boomers age and carefor their parents (or are cared for by their children) at home. In addition,according to Curbed,homes in major U.S. cities like San Francisco, Seattle and Los Angeles are nearlyas impossible to afford now as in New York. Supply and demand (desirablelocations with low rates of new housing construction), soaring tech salariesand the disappearance of middle class and blue-collar jobs are among thefactors that are contributing to this trend. To provide some affordable housingalternatives, cities like Seattle and San Francisco are easing restrictions onbuilding in-law units and providing incentives to encourage more homeowners tobuild these backyard cottages.

The In-Law SuiteSolution
Now, some forward-thinking developers are building in-lawsuites into new homes and calling them multigenerational homes. “Multigenerational families livingunder one roof is a national trend that we’re seeing here,” says Tony Green, themanaging partner at Pinehills LLC who is responsible for The Pinehills, aPlymouth, Massachusetts-based master planned community. “There are many casesof two generations living in the same home.” The Pinehills has developed 960 ofthe site’s 3,200 acres, preserving two acres of open space for every buildableacre.

According to Tom Martin, VP of planning/product at AlisoViejo, California-based master developer FivePoint™ Communities, theircompany began to focus intensely on multigenerational homes approximately threeyears ago. “We were the forerunner in delivering in-law suites to the market,”Martin says. FivePoint, which has several developments in California, isco-owned by Miami-based Lennar Corp., a nationwide homebuilder that hasimplemented the in-law suite concept in other projects around the country.

Above is an example of a Lennar "NextGen Home Witihin a Home" design,where the in-law unit includes a one-stall garage (courtesy NextGen/Lennar).

And Kennecott Land Company, developer of the 4,000-acre Daybreakmaster-planned community in South Jordan, Utah, has its own version of a multigenerationalhome in the works, according to the company’s marketing director, CameronJackson. “We’re currently working with a builder on the in-law unitconcept located on the main floor of the home, which is something new for us,”Jackson says. “Our plan is to test this concept, as we believe it’s a viableoffering in our market. If the test is successful, we plan to expand it to afull suite of products with one or more builders across the project.” While themajority of Daybreak’s homebuyers are move-up families, customers includeeveryone from first-time homebuyers to seniors.

Flexibility and Affordability
Martin and Jackson agree that there is an underserved marketof homebuyers looking for maximum flexibility andaffordability. “It’sthe evolution of the demographics that morphed into an entire product marketingstrategy,” Martin says. Whether it’s people in their 50s and 60staking care of aging parents at home, Millennials who could afford tobuy their own home if they rent out an Airbnb suite, or retirees who couldbenefit from receiving stable rental income, families arediscovering multiple benefits to multi-generational living.“Wefound that when we offered in-law suites at our projects, a large percent ofpurchasers would not have bought at the project had the suite not been offered,”Martin says. Jacksonagrees. “We’ve seen some very interesting research data from John Burnsand others that supports the viability of it,” Jackson says. “Dependingon the market, a builder can justify the investment to meet the needs ofseveral different living situations that are increasingly prevalent butunderserved by the market.”

Functional
Design
According to Martin, a typical in-law suite in a FivePointcommunity comprises a living area, glorified breakfast bar (including amicrowave oven and sink), master bedroom and bathroom. Popular amenitiesinclude a locking door between the main house and the suite, a master bedroomor mini-master bedroom in the suite, and either a separate entrance or noseparate entrance to the suite depending on family needs and preferences.

Where to place the in-law suite withinthe home is an important consideration. While some designers locate it on themain floor for convenience and accessibility (so that aging parents don’t haveto go up or down any stairs), others create multi-level solutions like thePinehills flex cottage.

“The idea is to create two distinct access points onthe different levels—one for the home and another for the flex space,” Greensays.Because the flex cottage lots slope down at a 12 percent grade from acottage residential streetscape in the front to a commercial street in therear, these homes are designed with the private home facing the neighborhoodstreet, whereas underneath, on the walk-out lower level, an apartment (orbusiness space) fronts the more commercial street. “If you opt to have a livingarea built on the walk-out lower level, a family member can live independentlyin an 850-square-foot, one-bedroom apartment with a private entrance, kitchen,living/dining area, half and full bathrooms, patio and parking,” Green says

(image above shows a flexexampleat Pinehills with upper and lower entries, courtesy Pinehills).

Trending Up
“We’reprobably in the early-adopter phase of the cycle,” Jackson says, “but as landbecomes more scarce and the Baby Boomer generation continues to age, I thinkwe’ll see more of these types of homes getting built, as long as there is amarket and regulatory acceptance of them as a housing type.”

Inthe next one to three years, Jackson and Martin see this trend continuing tosurge. “We see more builders jumping on the band wagon and testing it, and theleaders in the space, such as Lennar, continuing to refine what they’ve learnedand get better at meeting market demand,” Jackson says. Martin agrees. “We’rejust getting rolling,” he says.For a collection of plans with in-law suites, click here.

Multi-Generation Homes (2024)

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