Real Estate Design Apr23

Real Estate Design

Shelter in place practices have made an impact on every industry in America. Multitenant industrial and retailers grasp to make rent while grocers, tech, and delivery firms thrive. We naturally attach value to such changes. Real estate and its design, however, are neutral reflectors of social shifts. Like events before it, COVID-19 is the next big thing to change the face of housing. But first, let’s look back at other shifts that have changed the way that we live. We’ve seen this before – sort of Major social and economic events directly impact that way that we design and inhabit real estate. Following the wreckage of the Great Depression, President Franklin D. Roosevelt’s New Deal propelled the development of interstates and suburbs. Subdivisions sprang up, dispersing families into nuclear households. By the mid-1940s, middle class workers’ commutes prompted the addition of built-on garages. With the cheap suburban lots, greater car affordability, and adequate employment rates of the 1960s, many families opted for large houses with two-car garages. Fast forward to the economic prosperity of the 90s. Middle class and affluent Americans indulged in spacious homes with open floor plans. Multifamily construction boomed, answering demand from young adults who struck out on their own. Most formed their own households after graduation. In 2005, only 19% of college graduates lived with or moved back in with their parents, reports MarketWatch. The Great Recession ended lavish living for most Americans. Homeowners and investors struggled with mortgages, inundating the market with foreclosures. As the Great Recession dragged on, multitudes of seniors moved in with their adult kids. The number of recent graduates moving back into their parents’ homes jumped to 28% in 2016. The nuclear households of the 50s-90s began to disappear. Multigenerational housing reemerged and real estate changes followed soon after. Coming full circle to multigenerational housing with a twist Around 2012, multigenerational housing became the “new” trend in single family real estate. Though multigenerational households were the standard for thousands of years, modern multigen housing offered greater privacy. Finished basements with separate entries increased in popularity. Homes with two masters on the main floor thrived since they could support the homeowners as well as their aging parents. In price points that accommodated larger lots, young adults or in-laws lived in detached suites that shared mortgage and utilities costs. Young adults who would not or could not move in with family weathered the hard times in their apartments. Roommate floor plans were hot, especially when equipped with equally-sized private bedrooms and en suite bathrooms. Young adults postponed homeownership. Green building reasserts itself As the world shrugged off the burdens of the Great Recession, many eyes shifted to the next big thing in sustainable housing. Urban infill properties and mixed-use buildings brought residents closer to the businesses and services they used most. As a result, both classes reduced transportation pollution and costs. Between 2010-2019, tiny houses, micro apartments and co-living blossomed as way to reduce housing costs and environmental impact. Inside of their homes, residents implemented artificial technology to promote conservation and cut costs. Smart thermostats, lights, and appliances have become more commonplace. In addition to saving money and resources, residents crave greater control of our homes even when we were outside of it. Little did we know that we be spending so much time at home in 2020. COVID-19: the death of open floor plans? March 2020 marked sweeping shelter in place practices throughout the US. The sustainable measures of the past decade helped to decrease housing expenses, but other real estate changes are being reevaluated. Residents of mixed-use and infill properties are feeling the pain of stay at home policies. Public green spaces are closed and few units have more than a balcony for access to the outdoors. Psychologically, being surrounded by closed businesses isn’t reassuring. Smart home tech comes with benefits and disadvantages during the COVID-19 lockdown. The conveniences that...