Next Generation Townhomes Add ADU-style suites for multi-generational living
Homebuilders are adapting to the growing needs of families. Whether it’s elderly parents or property owners looking to make extra money, it’s all about convenience.
The newest Profile of home buyers and sellers report of the National Association of Real Estate Agents® shows that multi-generational homes made up 17% of home purchases last year, which represents a record high.
Last year, more than a third of homebuyers cited “cost savings” as the top reason for purchasing a multigenerational home, up from 15% in 2015, according to the NAR report.
“There has been greater interest in intergenerational living in recent years as people live longer and housing has become more expensive,” says Cara Ameerbroker at Coldwell Banker Vanguard Realty in Florida.
“Combining resources always helps with purchasing power and provides more home and space, so buyers are really responding enthusiastically to properties with ADUs or in-law suites.”
Homebuilders are taking note of this trend and are building urban homes that meet this need.
“Because there isn’t much availability for multi-generational homes in the resale market right now, new construction townhomes with these layouts are the most popular way people are purchasing homes for themselves and their parents,” says real estate agent. Samantha Sousa by Real estate in the Sousa Valley in Tulare, CA.
“There is a huge need in my market for these mini-suites or ADUs, and a few builders are jumping on that style.”
Next Gen Suite
Lennar builds townhomes starting at $417,990 with a “Next Gen” ADU-style suite, an attached private suite with its own separate entrance, living room, kitchen, bedroom and bathroom.
Next Gen offers unique floor plans that meet the diverse needs of families without sacrificing comfort or privacy.
According to Lennar, families across the country have numerous ways they are using the Next Gen Suite, including accommodating aging parents, adult children returning from college and family members with special needs.
“We originally developed these plans to be flexible for multi-generational families, but our homeowners have used them for everything from home offices to yoga studios and homeschool classrooms,” Joy Broddle‘, says division chairman Lennar Las Vegas Realtor.com®. “The use continues. These homes provide privacy and independence while promoting community.”
The Next Gen floor plan is known as ‘a house within a house’.
“Due to demand and success of the layout, we have been working to develop a Next Gen home into a townhome floor plan so we can offer it in all price ranges and locations,” says Broddle.
Ameer says its customers have responded positively to the Next Gen layout.
“This allows everyone to live comfortably under one roof and still have their own space,” she says.
Townhome in Washington, DC
A newly renovated townhome in Washington, DC, is on the market for $1,699,000 and has a built-in ADU that can cut your mortgage payments in half, according to the listing.
“The lower level is a legal rental unit with a certificate of occupancy and a front and rear entrance,” the listing says. “It features a full kitchen, living and dining room, one bedroom and a luxurious bathroom. Perfect for a luxury rental, in-law suite or guest space. Incredible passive income opportunity!”
The property is ideal for house hacking: when you rent out one or more parts of your home to cover the costs of your mortgage or even make a profit.
“I’ve had a lot of clients this year who want to live on their own, but the only way they can do that is if they find someone willing to rent out the basement of the house,” says real estate agent Sherry Lynn Westhues by ReeceNichols in Kansas City, MO. “They have to rent out part of the house to afford it, but overall they seem happy with it.”
According to Seamus NallyCEO of TurboTenanttownhomes with ADUs on the lower level are more common in more highly populated urban areas such as Washington, DC.
“These are the kind of places where not only is the population high, but the lack of space for gardens or new housing is significantly limited,” he says. “So lower level ADUs in townhomes become some of the best or only options for ADUs because of those logistics.”
Big Mouth House in Seattle
This month a townhome at the Big Mouth House in Seattle with a lower level outbuilding, sold for $1,125,000.
“The lower level offers built-in bike storage plus a fully equipped ADU with kitchenette and washer/dryer,” the mention said.
Although the ADU connects to the interior of the townhome, it also has a dedicated entrance. That makes it ideal for use as a guest room, work space, extra family space or a potential rental unit.
“The lower level ADU certainly felt like an added value for interested buyers,” says the listing agent. Lauren Essl bee Compass in Seattle. “A fully self-contained ADU with its own separate entrance in a townhome is a unique feature that I haven’t seen often in our city. It was such a smart, intentional detail by the architects.”
This townhome has been featured in publications such as Dwell and Arch Daily and was the winner of the 2019 AIA Seattle Award of Honor.
“The potential for rental income or multi-generational living gives the homeowner so many options for their property,” says Essl. “I would like to see more townhomes with this feature.”
