New U.S. Homes Make Room for Airbnb Crowd
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1 New U.S. Homes Make Room for Airbnb Crowd Designs account for rising housing costs by carving out extra space for extended family or renters By LAURA KUSISTO Jan. 22, :18 p.m. ET LAS VEGAS The splashy model house unveiled this week during the home-building industry s largest trade show featured an unexpected design concept: roommates. In a nod to rising housing costs across the U.S., a Las Vegas developer presented its vision for of the New American Home, a staple of the annual builders show, that included nontraditional living arrangements to help ease families financial burdens. The 5,200-square foot home, perched on a hill overlooking the Vegas skyline, includes a second-floor unit that can house aging parents or recent college grads with shaky employment prospects. If necessary, the home, constructed by local developer Element Design Build, could even accommodate two families pooling their resources. In years past, the International Builders Show has showcased the latest concepts and technologies, from vaulted ceilings and great rooms to so-called net-zero energy homes, which generate all the electricity they use. This year affordability concerns were on display. Home builders say they are seeing growing demand for properties designed to be shared with family members or roommates or even rented out to tourists.
2 U.S. home prices have increased by 25% since the beginning of the recovery in 2011, according to S&P/Case-Shiller Home Price Index, while median household incomes have barely budged. In October, prices jumped 11% in Portland, San Francisco and Denver from the year-earlier month. In Las Vegas, prices rose 6% during that time. Apartment rents, meanwhile, have jumped by 20% since 2010, according to data tracker Reis Inc., making it more difficult for prospective home buyers to save for down payments. Another home at the trade show, built by Pardee Homes, a member of the Californiabased TRI Pointe Group, was designed to cater to the tastes of younger home buyers in the mid-$300,000 range. It includes two guest suites that can be rented on home-sharing sites such as Airbnb. Both include separate entrances and a small kitchenette and can accommodate a single person or couple in need of a roommate. In a survey of young adults, TRI Pointe found that 35% want to be able to rent out space in their homes at least part-time. A lot of their motivation for doing that is to make the financial step of buying their home more doable, said Linda Mamet, vice president of corporate marketing at TRI Pointe. In the year ended June 2015, 13% of buyers purchased a home to accommodate multiple generations, according to the National Association of Realtors, about the same as in 2013, when the group started collecting data. But more buyers are considering the idea: A quarter of all home buyers say they want a separate suite in their home with a kitchenette to accommodate such arrangements, according to John Burns Real Estate Consulting Inc. Brad Hunter, chief economist at Metrostudy, a construction-research firm, said builders are stepping up efforts to build such homes to capture the zeitgeist of affordability.
3 Tom Moser, a 62-year-old money manager, and his wife, Kristin, purchased a home just outside of Tucson, Ariz., to share with his father, now 85 years old. Other family members live in homes on both sides of them. Mr. Moser wanted to be near his family and alleviate his father s loneliness, but he said it was also a great deal financially. He and his father sold their previous homes for a combined $540,000 and the home they share costs $335,000. Mr. Moser acknowledges the arrangement isn t for everyone. If it doesn t work seeing your father or mother a few times a week it s not going to work every single day, he said. The homes were built by Lennar Corp., which has allowed buyers to select from a variety of layouts catering to multiple households living together since The company said it has sold 3,500 such homes. Atlanta-based PulteGroup Inc. launched a similar product several years ago and has seen some uptick in demand. Last year, 8% of the homes it built catered to multiple households, compared with 6% the year before. Toll Brothers Inc. said it has been more aggressive in marketing multigenerational suites, and in the past few years has begun including options for a separate entrance and small kitchen. Affordability is likely to continue to be a concern. Existing-home sales rose 14.7% in December from the prior month to a seasonally adjusted annual rate of 5.46 million, the National Association of Realtors said Friday the U.S. housing market s best year since before the recession. Inventory of existing homes for sale fell 12% to 1.79 million. At 3.9 months worth of supply, inventories are at the lowest level in nearly a decade.
4 Josh Anderson, owner of Element Design Build, said the Las Vegas home s second-floor suite includes a room for a king-size bed, a large terrace, a fireplace, a free-standing tub and a built-in cappuccino maker and warming plate. While the cost of the model home is high Mr. Anderson plans to list it for close to $4 million the New American Home concept aims to give builders ideas that can work at lower price points. I do see more and more across all the segments this multigenerational living happening, said Mr. Anderson. The takeaway from that is you can design some cool spaces.
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