Townhomes on The Rise
Imagine: The American Dream.
What are you picturing: A white picket fence, beautiful large windows with window boxes, corbel detailing, 3-car attached front load garage? Maybe not anymore…Townhomes are on the rise for two specific market segments: younger Baby Boomers and Millennials.
At first glance, it’s odd to think Boomers and Millennials could have anything in common when it comes to home buying, but as a matter of fact, they have many of the same needs. Check out our blogs comparing the similarities and differences of housing preferences in Boomers and Millennials.
As the younger Millennials begin to enter the home ownership world, they are hit with the reality of high costs and maintenance that go along with it. With a shortage of starter homes in America (we’re working on it!), townhomes are gaining popularity among the first-time buyers. Townhomes tend to be significantly less expensive than detached single family homes while offering all the great updates buyers are expecting.
Trends are showing Boomers are staying in the workforce past the typical retirement age of 65. In a Pew research study, about half of working boomers past retirement age said it’s because they need the paycheck, while the other half is choosing to work for enjoyment. With half needing to work past 65 to survive, they’re looking to cut costs where they can. Making the transition from a single family home to a townhome is a great option while having little sacrifice.
Boomers are enjoying their empty nester life, while many Millennials haven’t “settled down” yet. Because of this, both markets would rather go out and participate in activities outside the home. Having a walkable community to restaurants and entertainment is high-priority. They are drawn to the idea of the high-density urban lifestyle to have quick and easy access to entertainment.
Because Boomers and Millennials are spending more time outside of their home participating in their communities, there’s less time for homeowner tasks such as fixing that leak from 3 months ago, mowing your overgrown lawn, or updating that 20-year-old kitchen. With Townhomes, many have HOA fees that include a lot of these tasks, leaving the residents with more time spent on things they enjoy! Stress-free once again!
Townhomes that are 3-4 stories allow for high-density locations to have more living space, while also still feeling like a detached single family home. As land cost increases, going up rather than out is an affordable way to get the most out of your space. Allowing for more outdoor spaces in the form of balconies or rooftop areas is a great way to not only avoid the high land costs, but attract the Millennials and younger, healthy Boomers who don’t mind upstairs bedrooms and are looking for the fluid outdoor entertaining spaces.