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Builders tout luxury townhomes for millennials

By Mike Wheatley | January 18, 2019

Wary of a slowdown in the residential real estate market, U.S. building firms are increasingly trying to tempt wealthy young adults into buying property through the concept of luxury townhomes.

The luxury townhomes sport features such as open floor plans, high ceilings and luxury amenities that builders hope will convince high-flying millennials to buy their first home.

“When a lot of people think of townhouses, they think of these very narrow homes because the floors are stacked on top of one another,” Felix Bravo, a sales executive with Pordes Residential in Miami, told Forbes.

Bravo is selling townhomes that start at $900,000 and offer up to 3,000 square feet of living space, with amenities including a private rooftop terrace, jacuzzi and outdoor kitchen.

“The wow factor is how much space they have and how luxurious the interior is in terms of appliances, cabinetry, and the kitchen island,” Bravo said. “The second biggest wow factor is being able to go up to your own private rooftop and hop into your private jacuzzi. It makes you feel like you’re worth a million bucks.”

Robert Dietz, chief economist for the National Association of Home, told Forbes that builders are pinning their hopes on younger adults buying the luxury townhomes.

“There are plenty of examples of townhouses being built as luxury homes,” Dietz said. “You’ve got your four-story townhouses, particularly in high-cost metro areas.”

Such townhomes provide a “suburban-type feel” while also providing walkability within the neighborhood, which are two highly desirable features for millennials, Dietz said.

New townhome construction has been steadily increasing since 2009. New starts were 24 percent higher in the third quarter of 2018 than the previous four quarters, according to NAHB data. The market share of townhouses is currently at about 14 percent of single-family home construction, which marks a post-recession high.

Dietz predicts over the next five years that the townhome market share will continue to rise and reach about 20 percent.

Mike Wheatley is the senior editor at Realty Biz News. Got a real estate related news article you wish to share, contact Mike at [email protected].
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