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Canin Associates to Present at the 2015 Southeast Building Conference

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On Friday, July 17, 2015, Canin Associates’ Tony Weremeichik will present at the 2015 Southeast Building Conference (SEBC) in Orlando, Florida. Now in its 37th year, the SEBC has been a meeting place for building industry professionals from the areas of contracting, remodeling, architecture, engineering, and development. The three-day conference includes exhibits by more than 265 companies, as well as offering over 40 continuing education credits worth of workshops, panels, and presentations.

 

SEBC 2015 Canin Associates Architects

 

The topic of Tony’s presentation will be Buyer Magnets for Gen X, Gen Y, and Boomer. He is scheduled to present on Friday, July 17, at 1:00pm. Be sure to follow us on Twitter and Facebook for more information.

 

 

Do Home Buyers Really Want Smart Home Technology?

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As a home designer, for many years I’ve been greatly anticipating a time when we will see useful and affordable electronics as standard items in our homes to make our lives easier–whether they offer convenience or save us money. I am still waiting. Options are all out there; we have the technology, but the costs are not quite attainable yet.  But new cars, at all price points, offer integrated Bluetooth technology, fuel monitoring, navigations systems, WiFi, etc.  The auto industry has responded to consumer demand, so why hasn’t the housing industry done the same?

 

NESTthermostatPicture2“I want that!” Home electronics and automation selections can be overwhelming. If you have ever researched the latest home technologies, or ever heard a presentation, you may feel like a kid in a candy store as there are boundless options. For most, it’s a dream come true to live in a technologically advanced, fully automated home as if you were George Jetson yourself. You may find you “would really like this” or you “gotta have that”…and the list usually grows.

 

But home electronics come at a cost, and frugal consideration must be given to home buyers’ needs and the conveniences they are willing to pay for.

 

What matters to homebuyers? A recent technology survey, “What Home Buyers Really Want,” presented at the 2015 International Builders Show, reveals what ranks at the top of buyer’s tech wish lists:

 

BALA_Chart

 

Since not everyone can afford it all, practicality rules. Level-headedness must prevail. But almost every type of buyer wants at least home security and programmable thermostats.

 

Millennial buyers seem to be the most tech savvy, but most are not in a financial position to be able to afford extras like central vacuums or lighting control systems. They are fine with their iPad controlled Apple TV and a wireless home theater surround sound system from Best Buy. For the most part, the same is true with the Gen-Xers and Boomers. Simple and easy-to-use gadgets that can be controlled with your smartphone seem to be what’s mainstream now.

 

Here are a few new, yet attainable, technology ideas that buyers may find to be “must haves” are slowly creeping their way into new homes, and Home Design and Building Professionals must adapt new plan designs to accommodate these needs:

 

  • Charge Electronics Devices: Most new home designs have a drop zone, a small transitional area where you “Drop” things when you come home, usually located between the garage and the kitchen. This convenient space allows you to drop your keys, purse, phone, mail, etc. on your way in without having to drop it all on the kitchen countertops. Instead of equipping this counter with a normal duplex outlet to recharge your phones, use the new USB Duplex outlets here, which provide two USB plugs for any smartphone charger. Already growing in popularity in hotel rooms, these USB duplexes come in handy behind the nightstands in the bedroom or in the home office as well.
  • Programmable Thermostat: Nest is a Learning Thermostat that learns your schedule, programs itself and can be controlled from your phone. Teach it well and the Nest Thermostat can lower heating and cooling bills up to 20%. ($250, nest.com).
  • Front Door Locks: The bluetooth-controlled Kēvo is a new way to lock and unlock your front door without a key. Using your smartphone or keychain fob, this smart lock will unlock at the touch of a finger. The smartphone app lets you send e-keys, track entries and lock your home remotely. ($220, kwikset.com)
  • Healthy Home:  How much is clean air worth to your buyers? How do you eliminate the unpleasant microscopic, particle-sized pollutants that surround you indoors and how do you remove them from the air you breathe? Innovated in Sweden, Blueair purifiers use HEPASilent® technology to silently and effectively remove triggers like dust mites, allergens, volatile organic compounds (VOC’s), pet dander, mold, cigarette smoke, and more. ($330+, us.blueair.com)
  • Wrinkle Free Clothes: Save yourself time and money from having to go to the drycleaners, and do it yourself, sans the iron and steamer. Available at Best Buy, Whirlpool’s new Swash is a 10-minute clothing care system ($500, Swash.com). In new home or remodel design, consider a space to store it in the laundry room or master closet, and provide an outlet for it as well.

 

WhirlpoolSwashPicture[1]

 

Home design is constantly changing and evolving to meet the needs and lifestyles of today’s homebuyers – much like the invention of the toilet that launched bathroom design in homes, refrigerators replaced ice boxes and furnaces replaced fireplaces, home electronics are now making a significant impact on the way we live and the way we have to design homes today for tomorrow.

 

 

Single-Family Can Be Urban, Too

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American housing design is in need of a paradigm shift. Recognizing generational preferences, increasing affordability constraints, and sustainable solutions are needed to start a new chapter in the planning of our cities, especially when it comes to housing. But that doesn’t mean the single-family home is dead. In fact, if we begin to build houses around the principles of density, efficiency, and flexibility, a modern version of the single-family home could bridge the gap between what incentivizes builders and developers, and the new reality faced by many potential homebuyers.

 Single-Family Homes in an Urban EnvironmentSeattle, 1947. Photo © Seattle Municipal Archives

 

The nation’s changing demographics are a driving force behind a new focus on the often overlooked needs of two explosive market segments: singles in both Gen Y and Baby Boomer cohorts. With over half of all American adults single1, it’s no surprise that 28% of new-home buyers (18% women and 10% men) are single2. Additionally, Generation Y (now between 20 and 34 years old) and Baby Boomers (currently between 50 and 68 years old) make up nearly two-thirds of homebuyers3. While the housing industry has begun looking at the opportunity to serve Baby Boomers, it often fails to completely understand the needs of Gen Y and single buyers.

 

Singles in the United States

 

While three-quarters of Americans across all cohorts still prefer to live in single-family detached homes4, it has become difficult for Gen Y and single buyers to find affordable, tailored homes in the current stock of home designs and builder offerings. Financial pressures are increasingly affecting young homebuyers’ decisions. Adjusted median household income has remained virtually unchanged since 19895 and is one of the factors behind increased credit card debt and high student loans. Combined, stagnant earnings and growing personal debt are reducing the buying power of many young Americans, which is reflected in a 12% drop in first-time homebuyer market participation in the past decade6. Because the conventional building model does not take these restrictions into account, it misses out on a large portion of potential homebuyers.

 

Median Household Income

Changing demographics, increasing financial constraints, and modern preferences create the perfect springboard for a new era of very different single-family offerings. For example, without losing the quality and appeal of a traditional single-family community, micro homes (under 1000 sq. ft.) can create neighborhoods of truly detached single-family homes at densities of over 20 units per acre. For builders, higher densities can mean lower land costs per unit; for developers, micro neighborhoods can yield significant margins in per-acre sales; and for buyers, the ability to afford a detached home can once again become an aspirational reality.

 

In our site planning tests, we found that micro neighborhood designs can fit between four and six specially-designed homes (ranging from 500 to 900 square feet) onto a quarter-acre lot, allowing for densities of 16, 20, or even 24 units per acre. This model gives developers the ability to create complete, intimate neighborhoods. By limiting the size of the offerings to no more than 20 to 30 homes per neighborhood, it becomes possible to drive rapid absorption by matching demand and opportunity on a finely calibrated scale. Developers can create a sense of buyer urgency with flexible pricing that they can adapt to demand, available inventory, and market pricing.

 

With diversifying preferences and changing economic conditions, increasing residential density is the next logical step in American home design for builders, developers, municipalities, and, most importantly, buyers. By adapting the single-family home to a more urban context, we can take these considerations into account and create walkable, authentic communities.

 

Sources:
[1] Bureau of Labor Statistics, 2014
[2] National Associates of Realtors, Profile of Home Buyers and Sellers, 2011
[3] National Association of Realtors, Home Buyer and Seller Generational Trends, 2014
[4] National Association of Realtors, National Community Preference Survey, 2013
[5] US Census Bureau, 2012
[6] National Association of Home Builders, Wall Street Journal, 2014

 

 

Millenials Want to Be Green: Taking Sustainability to the Next Level

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Millenials Seek Green Homes

Labeled as the generation to turn around the housing market, Millennials (born between 1980 and 2000) represent a huge new segment of current and future homebuyers. But what has garnered them so much attention in the world of urban planning, design, and development? One major characteristic of this group is its attitude towards wanting to a live a more conscious lifestyle. Studies love to label Gen Y as “green” and “sustainable.” But delving deeper, new research shows that Millennials are thinking greener than they are acting. This presents the perfect opportunity for home builders to create products that help Millennials reach their sustainability goals, while creating the type of independent and customizable homes they desire.

One of the major reasons green building practices have piqued the interest of homebuilders in the past decade is the overwhelming support for them in market surveys. According to a recent McGrann Associates survey, a whopping 91% of respondents said that they would be likely to consider green or energy efficient features in a home—if the cost isn’t drastically different. This attitude applies to both new and existing homes. Interestingly enough, the two groups that seemed to know the most about green building practices were those aged 25 to 34 and those aged 55 to 64. In short, Millennials and Baby Boomers (the two demographic heavyweights that represent today’s largest home-buying segments) are most interested in leading a green lifestyle.

What “Green” Means to Millenials

Gen Y is a generation that equates “green” with “high-tech.” In fact, according to a Better Homes and Gardens Real Estate Survey, a substantial 84% of 18 to 35-year-olds say that high-tech appliances are must-haves. The three most popular high-tech home features are energy efficient washers and dryers, security systems, and smart thermostats. After “green” and “sustainable,” Millennials are on the lookout for the next buzzword: “high-tech.”

Still, it’s important to realize that this generation interprets “being green” differently than other generations. Most notably, according to the 2013 Eco Pulse Study, Millennials are more attitudinally green than behaviorally green. While they theoretically support everything sustainable, few practice what they preach. For builders, the key is to make a conscious lifestyle easier to implement. Gardens for growing food at home and places to store recyclables are inexpensive quick fixes for creating greener homes. Furthermore, Millennials are more likely to buy homes that already feature energy efficient appliances and upgraded thermostats, rather than installing them themselves. This is where builders can step in and make homes more appealing to Millennials by supporting their desire to live a green lifestyle.

In addition to technology-driven homes, it’s undeniable that Millennials are seeking adaptive places to live. Cookie-cutter is out, unique is in: This generation wants more than the stereotypical luxury home their parents always dreamed of. In lieu of mega-mansions, 77% of Gen Y-ers actually prefer “essential” homes. These are smaller and more adaptive than conventional houses. For builders, that means flex rooms should also serve as home offices, in-home technology outweighs curb appeal upgrades, and houses must be as unique as their inhabitants. And if there’s something for Millennials to fix up themselves, even better (at least according to the 30% of survey respondents who are ready to get their hands dirty in a renovation).

Millenials value Simplified Curb Appeal in new home trends

Millenials Want to Be Sustainable Outside the Home

For Millennials, having a green attitude isn’t confined to the home itself. The National Association of Home Builders found that 30% of first-time home buyers (generally of Gen Y), select a home based on its location to where they work. This is especially underscored by reports of automakers left flabbergasted by this generation’s seeming indifference to owning a car. With Gen Y auto sales down and only 54% of Americans getting their drivers licenses before turning 18, the need for walkable, transit-conscious housing is sure to increase in the coming years.

This generation may be more aware of the total cost of ownership than any other. Transportation costs and commute time are often as important to Millennials as the opportunity to reduce their utility bills. The McGrann Associates survey found that 83% of respondents understood that the initially higher investment in green building practices is eventually evened out. Like most investments, Gen Y has the benefit of time when it comes to reaping the rewards of their green homes.

Millennials are an important demographic for builders. Their habits are reflected in their immense numbers, giving them the ability to change the course of American home building. While their interest in living an eco-conscious, high-tech lifestyle should be celebrated, many Gen Y-ers lack the resources to translate their attitudes into actions. By providing unique, efficient, and progressive homes, designers and builders can begin to bridge the gap between what Millennials want, and what they can attain.

This article also appeared in Green Home Builder Magazine.