Homebuyers looking for functionality, outdoor living

The market for new home construction is strong, developers say, and buyers are savvier than ever about their design decisions. From the millennial to the active adult, those looking to purchase a residence are looking for maximized living space, smart technology and energy efficiency.

Grandfather Homes President Matt Ewers said he has seen a resurgence of young professionals interested in buying in Center City. Part of Ewers’ operations has focused recently on a new townhome project on Ideal Way in Dilworth dubbed the Fountain Duets at Mattie Rose.

He said properties in and around uptown sell twice as quickly as those in the suburbs.

“People love it when they can leave their homes and walk or ride the train to where they’re going,” he said.

With an average price of $850,000, Grandfather Homes’ custom-designed homes don’t come cheap. At that price point, buyers want a move-in ready home with the latest technological advances.

“All the cool kids want to operate their lights and security cameras from an iPhone,” he said.

Ewers said his clients, which also include empty nesters, are asking for one or two master bedrooms on the main floor, each with a bathroom featuring a full shower and enclosed toilet for privacy. Bathtubs, he said, are going the way of the dinosaur.

Painted brick and the muted color greige—a combination of grey and beige—are popular choices, he said. Outdoor living also is important to clients, he said, but in a different way from the past.

“Buyers used to want a half-acre or more, but now they don’t want the upkeep,” he said. “Instead, they’re looking for a smaller space with a grill station and pergola.”

After the bust

Ewers said the homebuilding industry has changed since the housing bust in 2008. Financing has been hard to come by, and that has weeded out a lot of the flippers and investors who dabbled in the market.

“There are a lot more smarter, well-designed projects out there,” he said. “You can’t be a part-time builder anymore.”

Alan Beulah, vice president of operations in sales and marketing for M/I Homes, agrees.

“All the mom and pop builders got pushed to the side,” he said. “Everybody has had to up their game. Buyers are more informed and expect a certain level of (expertise).”

M/I Homes, which has 11 communities in the Charlotte area, generally prices its homes between $250,000 and  $400,000. Most of the company’s clients are either young families moving into their first home or empty nesters.

Beulah says the overriding desire among M/I Homes’ customers appears to be functionality.

Before the recession, he said, clients preferred McMansions with more square footage.

“Now they want to make sure the floor plan accommodates how they live,” he said. That includes an open floor plan with large kitchen islands so families can spend more time together, and the ability to expand the home at a later date.

Energy efficiency also is important, and clients don’t want to have to do a lot of maintenance such as replacing AC units.

With that in mind, Beulah said, what buyers can’t see behind the walls is just as important as granite countertops and stainless steel appliances.

He said the company tells customers about its use of, for example, jump ducts that allow effective air flow and eco-friendly paint and carpets.

“We educate the buyer on what we provide so they understand and perform due diligence,” he said.

No ‘crazy trends’

Toll Brothers Division Vice President for Charlotte Tench Tilghman said he’s not seeing any “crazy trends” among the company’s homebuyers, which range from mover-uppers at Bromley Estates in Weddington and younger families at the Preserve at Marvin to empty nesters  at Regency at Palisades on Lake Wylie.

Even though the custom homebuilder serves the “luxury” market with average homes prices at  $750,000, customers are still cost conscious.

They are not spending as they once did on “frivolous” items such as marble inlays, he said, because mortgages are more difficult to get.

“Everybody is looking to be reasonable and not spend as much money on foolish stuff.”

When they do spend extra, buyers are more likely to invest in the master bath or kitchen, he said, as improvements there bring the most resale value.  Such upgrades might include customizing the shower with body-spray jets or replacing the stove with a slide-in, six-burner range with hood.

Veronica Perez, director of sales and marketing at Lennar Charlotte, says customers are looking for “fit and finish,” or the detail and attention paid to the completed project.

Lennar, with 16 developments in the Charlotte area, caters to families of all ages. The company also has a large customer base among those aged 55 years and older, and is developing the 613-acre Tree Top active-adult community in Fort Mill. Local Lennar homes cost anywhere from $150,000 to above $400,000.

Lennar has also found that open floor plans are popular among families. Kitchens are considered the hub of activity, and are used for multiple purposes. For example, Perez said, customers no longer want a breakfast nook or desk space for a computer in their kitchen. Instead, they prefer counter space with an overhang on which to place their laptops.

She said at least 40 percent of Lennar homebuyers customize their purchases for outdoor entertainment, which can mean adding stone pavers, a patio, a grill, or a smoker.

“The ability to expand living space into the backyard is extremely important,” she said. “They want to continue the transitional feel outside and maximize every possible square foot.”

Boomers vs. millennials

Lennar’s older customers stand out for a number of reasons. While they share in their younger cohorts’ preference for an open, transitional floor plan, Perez said the older generation is more likely to compromise on kitchen space in order to have a formal living or dining room.

“When only two people live in a home they are more likely to eat out a lot,” she explained. “And, they have furniture they are not willing to part with.”

Retirees also are more likely to seek out sunrooms and covered patios, she said. They desire large, walk-in showers and space for a guest room. And they aren’t particularly interested in having fireplaces.

But, she said, they are just as tech astute as the younger generation.

“They are no longer hardwiring for speakers,” she said, and are as likely as younger clients to have USB ports in their kitchens.

Meanwhile, it appears some of Lennar’s customers are going retro.

Stainless steel refrigerators are standard in Lennar homes, and clients have begun seeking upgrades to the black refrigerators that became popular in the 1980s.

“Everything old is new again,” Perez said.