Due to the increased popularity of new walkable urban villages among first-time homebuyers and boomers, there’s a growing demand for high-density housing.
As the starter home shortage begins to emerge, townhouses are gaining in popularity with two major homebuyer segments: Baby Boomers and Millennials.
Investing in Lifestyle
Although Millennials and Boomers don’t seem to have similar lifestyles, they do have similar needs. Instead of planning for a growing family, both segments prefer a low-maintenance solution that gives them more opportunities to engage in activities outside of the home.
Instead of spending time gardening, mowing the lawn and updating the home, Millennials and Boomers prefer to participate in their communities of choice. Townhouses offer the perfect solution for the buyer who is looking to sacrifice a little extra space for housing that’s more affordable and requires less maintenance.
The Fees That Free
A Homeowners Association (HOA) makes owning a home easier for Boomers and first-time buyers alike. With amenities and landscaping covered by these fees, these buyers are able to reduce the stress that comes with owning a detached home and enjoy their busy lifestyles.
A Big Boom
Boomers and Millennials represent the two largest groups of homebuyers today, at 31% and 35% respectively.
While Boomers are looking to downsize, Millennials are seeking a “starter home.” These homes can generally fall into the same specs, but there is an emerging starter home shortage. Since 2012, the number of starter homes available has fallen by 43.6%.
There are 78 million Americans who were born between 1946 and 1964, and they make up the Baby Boomer generation.
- 57% of Boomers plan to move out of their current homes after they retire
- 29% of Boomers plan to move within the next five years
- 83% of retirees do not plan on living with other generations of their families
- 34% will move because their current home is “too large”
- 42% list the most important factor in their move as “low maintenance features”
Townhomes offer Boomers the best of what they’re looking for: a low-maintenance, smaller home in a community near their family, friends, doctors and activities.
A Walkable Community
There’s a growing demand for walkable neighborhoods. In fact, 56% of Millennials and 46% of Baby Boomers prefer to live in more walkable, mixed-use neighborhoods. Townhomes are appealing because they’re oftentimes located in close-in urban neighborhoods with parks, dining, entertainment and shopping all within walking or biking distance.
Townhouses bring homebuyers closer to their dream homes. Savvy buyers with a clear vision of their futures can downsize square footage and upgrade everything else.
Contact your AHS® Account Executive for useful tools and resources available to you through our Townhouse Tool Kit.