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Our 5 Top Posts of 2015

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Happy New Year! Like most of you, we hit the ground running in what is sure to be a busy and exciting 2016. Nonetheless, we want to take a quick look back at some of our favorite posts from the past year. From streetcars in Atlanta to architecture in Lima, we took a look at mobility, buildings styles, and a new way to approach single-family homes.

Bike Lanes - Pros and ConsBike Lanes or No Bike Lanes: A False Dichotomy?

In many cities, a false dichotomy has dominated recent conversations around cycling: Should bicycle-riders travel on their own specialized networks of bike lanes or should they ride on any road alongside automobiles?

 

 

 

Saarbrücken SidewalkA Connectivity Case Study in Saarbrücken, Germany

Like most German cities, Saarbrücken’s core is a mix of walkable streets, urban buildings, and historic sites. Despite this, city leaders and residents are concerned about the future connectivity, mobility, and livability of their city.

 

 

 

Peru - Cusco - ArchitectureThree Architectural Periods in Peru

Peru as a country boasts a mix of cultures, climates, and architecture. What makes it an incredible place to visit is that modern Peru seamlessly blends together its diverse history.

 

 

 

 

Single-Family Homes in an Urban EnvironmentSingle-Family Can Be Urban, Too

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.

 

 

 

streetcar_implementation_atlantaImplementing Streetcars: Lessons from Atlanta

The streetcar fits a unique niche in our transportation system different from bus or light rail. It’s often described as an extension of the walking environment thanks to its ability to be used for short trips, while still connecting different neighborhoods within a city. However, as recent streetcar projects like the Downtown Loop in Atlanta have shown, their success requires patience.

 

ULI Central Florida: Visionaries Discuss the M-Factor

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Last week, I had the chance to attend ULI Central Florida’s signature YLG event A Night with Visionaries of Central Florida: The M-Factor. Hosted by the Young Leaders groups from ULI Central Florida, CREW Orlando, and NAIOP Central Florida, this latest edition provided a platform for visionaries and young professionals to discuss the impact Millennials are having on a wide array of real-estate-related fields.

 

ULI Event Recap

 

The program consisted of a series of roundtable discussions with some of Central Florida’s most influential leaders. During each seven-minute segment, a new visionary shared valuable insights within the areas of urban planning, development, philanthropy, healthcare, education, sports and entertainment, law, architecture, and technology. Proceeds from the event directly supported US Hunger. The group of Visionaries, and some of their observations on Millennials, included:

Don Campbell, Founder, US Hunger

“Social media is a powerful tool that Millennials respond to, but it doesn’t necessarily get them out to volunteer. We find that it’s our great work culture that’s attracting more interns in a world where volunteering is decreasing.”

Carlos Carbonell, CEO, Echo Interaction Group

“You don’t have to be a programmer to start a tech company—you can leverage that excitement and solve other problems through technology.”

ULI_Central_Florida_Visionaries_Recap3

Pauline Eaton, Main Street Coordinator, City of Orlando

“Millennials are looking for communities that have an authentic, unique identity.”

David Harrison, Professor of Real Estate, University of Central Florida

“In our program, we’re actively reaching out to find out how to improve our education, both in real estate and in tangent fields.”

Ken LaRoe, CEO & Chairman, First Green Bank

“We’re the first values-based financial institution on the East Coast. Millennials are drawn to organizations with a values-driven mission and sustainable practices.”

Leila Jammal Nodarse, Senior Principal, Terracon

“Millennials want to feel like they can bring ideas forward, especially ideas that support community.”

ULI_Central_Florida_Visionaries_Recap2

 

John Rife, Owner, East End Market

“Millennials are interested in authentic projects that meet area-specific needs and are not franchised. Through social media, pop-ups as precursors, and flex spaces, we can let demand shape those projects.”

David Stone, Director of Architectural Services, Phil Kean Design Group

“Being involved in professional organizations helped me make connections offline and online that led to connecting with and working for Phil Kean.”

Joshua Wallack, COO of Mango’s Tropical Café and Managing Principal at Skyplex

“In Orlando, your project needs enough power to rise above the noise to compete with what’s already out there—and to attract part of the 62 million visitors as well as the local market.”

Jim Zboril, President, Tavistock Development Group

“At Lake Nona, we’re attracting Millennials by expanding the variety of housing products, including Canin Associates’ Jewel Box homes, that meet the needs of young buyers while providing a lower price of entry.”

 

Photos by Chris Gotshall Photography

 

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.