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Homes in Ten Years

The Housing Scene by by Lew Sichelman
by Lew Sichelman
The Housing Scene | January 5th, 2018

What will houses look like, and live like, a decade from now?

New Atlas (formerly Gizmag), a science and technology website, recently put that question to Morris Miselowski, a self-described “futurist and transformation provocateur.”

As you might expect, Miselowski says technology will be a big driver, permeating practically every corner of our lives. But he sees a number of other trends that will have taken hold a decade from now, including multifunctional furniture, structures designed to accommodate three generations under a single roof, and houses that monitor our health.

These predictions aren’t exactly off-the-wall. Indeed, some aspects have already taken hold. But some of what Miselowski sees coming is rather far out.

For example, he suggests that there will be a major focus on smart surfaces that reduce the amount of work you have to do around the home. He sees such things as self-cleaning cutlery and china, as well as surfaces that tell you when it’s time for a deep clean. He also suggests that windows will be cleaned robotically (as some floors already are).

Miselowski also predicts that floor plans will continue to shrink, and that the typical house won’t be able to accommodate much furniture. Pieces will have to serve more than one purpose. As an example, he mentioned a relatively new robotic furniture system called Ori, which contains a bed, table, bookshelf and other pieces.

Engineered in Massachusetts, the Ori system can be reconfigured instantly, making your space feel substantially larger than it actually is. For what it’s worth, Ori takes its name from “origami,” the Japanese art of folding paper to create beautiful objects.

For the rental market, Miselowski notes the coming trend of rental properties including furniture. He explains that people will be even more transient than they are today -- willing to move on short notice, but unable to easily transport big pieces. Therefore, large pieces of furniture like sofas and beds will often come with the property you rent, he says. And as a result, people will be “investing in transportable pieces, such as unique artwork and handcrafted soft furnishings that stamp our personality on the spaces we inhabit.”

Here’s what Miselowski has to say about the multi-generational trend: As property and child care costs continue to rise, more houses will be designed to accommodate three generations living under one roof, with such features as two or more living spaces, a separate kitchenette and a large communal space where all the generations can gather together.

Other houses will feature flexible floor plans with walls that can be moved easily, adapting to occupants’ changing needs throughout the day.

Regarding technology, Miselowski says it will play an ever-increasing part in our lives. A decade from now, he says, “intuitive devices that do the thinking for us will be the norm.” Consider this scenario: “You’ll walk through the door and your home will automatically create a customized environment to suit your needs, including setting the perfect temperature, opening the blinds and suggesting what to have for dinner based on what’s in the fridge.”

Even better, in-home technology will be more seamlessly integrated. Wi-Fi, he points out, has already begun to be integrated into the walls of new builds, giving occupants perfect connectivity anywhere inside.

Technology will have its greatest impact in the kitchen, Miselowki says. “In 10 years’ time, it will be a multipurpose space that shifts smoothly between cooking, dining and entertaining,” he says.

Countertops will come into their own. No longer static objects, the average kitchen counter will perform myriad functions a decade from now: “Touch the surface and it will transform from prep area to induction cooktop or technology station,” the futurist says. “It will perform time-saving tasks, too, such as measuring ingredients and choosing the correct cooking temperatures. The kitchen will be a fully connected space that can monitor the progress of your cooking, connect to social media to discover what your guests like to eat, and tell you whether the milk in the fridge is still fresh.”

Finally, Miselowski notes that attitudes toward property ownership are changing. For baby boomers, owning a home was a sign of success. But their children aren’t so interested. They’ll be long-term renters and lead a more nomadic lifestyle, “happy to pack up their lives and accept that job on the other side of the world.”

The trends of downsizing and moving closer to the city will continue, particularly among boomers. Consequently, he predicts an increase in compact, four- to six-story, inner-city dwellings near public transportation. These homes, he says, will be in mixed-purpose builds, often above shops and cafes.

“There was once a real stigma attached to living in the flat above the shop, so this just proves how much our attitudes have changed in a generation or two,” he says.

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Odd Parcels: By the Numbers

The Housing Scene by by Lew Sichelman
by Lew Sichelman
The Housing Scene | December 29th, 2017

Despite the tragic massacre in Las Vegas where 59 people died during a concert this fall, big money is continuing to flow into the housing market there.

Kenneth Lowman, broker/owner of Luxury Homes of Las Vegas, reports that Sin City’s luxury home market is on pace for its best year in the past decade. So far this year, there have been 364 sales of houses at more than $1 million each. That’s a 35 percent jump from last year’s 268 luxury sales.

According to another Vegas-area luxury realty broker, Rob Jensen, sales of big-ticket houses in September were up 49 percent over a year ago. The most expensive sale in September was a $7.45 million home, followed by a $5.5 million home on the same street.

Lowman also reports that with about 400 luxury homes still on the market, Vegas’ high-end sector is “solid and balanced.”

About 20 percent of the luxury sales are in Summerlin, a master planned community with several guard-gated neighborhoods. “We have new communities raising the bar for luxury home prices and quality,” Lowman says, including one where lot prices start at $3 million. “World-class communities like this will attract buyers that might have passed over Las Vegas previously.”

Most immigrants to this country don’t buy houses when they arrive. They rent. Indeed, 1 in 4 apartment households is headed by an immigrant.

According to research commissioned by the National Multifamily Housing Council, more than four-fifths of the 18- to 34-year-olds who came to the states between 2006 and 2015 still rent. And 7 out of 10 who arrived between 1996 and 2005 are still renters.

The majority of the most recent immigrants who rent came from the Middle East, Southern Asia and sub-Saharan Africa. The fewest hailed from Canada.

Those from Southern Asia had the highest incomes, at just over $70,000 a year, yet they rented more often than they bought. Canadians had a median annual income of $70,000, while the annual median for Europeans was more than $60,000. Immigrants from the Middle East had the lowest median income, under $30,000.

Purchasing a home for cash certainly has its advantages, and not just for the seller. But if you are a cash buyer, it may not be smart to make a lowball offer, advises Beth Atalay, the broker/owner of Cam Realty and Property Management in Clermont, Florida.

For the seller, as Atalay posted on the ActiveRain real estate site, cash offers usually mean a quick closing with few, if any, contingencies, save for a home inspection. Cash can mean no appraisals and no worries about financing falling apart. And for buyers, paying cash generally means no out-of-pocket expenses related to obtaining a mortgage and no interest charges for the time they own the property.

But buyers have to realize that either way, cash or mortgage, the sellers will eventually get their money, Atalay pointed out. She offered this example:

Say a house is listed at $290,000 and receives three offers. One is $220,000 in cash, to close in two weeks. Another is for $295,000 -- $5,000 over the asking price -- to close in 30 days. And the third is for $290,000 with government-insured financing, to close in 45 days, but asking a 3 percent seller concession to cover closing costs and prepaid items such as property taxes.

If cash is king, the seller would accept the first offer, Atalay says. But by waiting just 14 more days, the seller would net $75,000 more by taking the second offer.

The question is, which would you accept?

The residential sector of the real estate universe accounts for less than 8 percent of the water used in the United States, according to a new report from the National Association of Home Builders (NAHB).

In 2010, residential water use totaled 27,400 million gallons per day (Mgal/d).

But from a more holistic perspective that considers water used for all purposes, residential use is a relatively small share of the nation’s thirst. Total withdrawals of water in 2010 were 355,000 Mgal/d. Consequently, the 27,400 Mgal/d used by residences accounted for just 7.7 percent of the total.

NAHB calculates that America’s typical home uses about 260 gallons of water per day. But the average varies widely by state, from a low of 100 gallons per day in Maine to a high of 472 gallons in Nevada.

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Quick Takes: Parental Loans; Tiny Resorts; Avoiding HOAs

The Housing Scene by by Lew Sichelman
by Lew Sichelman
The Housing Scene | December 22nd, 2017

Parents who want to help their offspring buy their first houses should make sure the kids fully understand what Mom and Dad expect in return. According to a poll this spring, parents and kids don’t always see eye-to-eye on the subject.

Consumer lending company loanDepot conducted the online survey, which queried 1,000 millennial adults (aged 18 to 38) and 1,000 of their parents. According to the survey, 68 percent of the parents view their financial support as purely a gift, but only 29 percent of the children see the money as a no-strings-attached present.

Thirty-six percent of the children see the money as a loan that they intend to repay. But just 11 percent of their parents expect to be repaid, ever. They even differ as to whether the endowment is part of the kids’ future inheritance: 11 percent of the parents believe it is, compared with just 7 percent of the children.

All of this could lead to clashes, as the kids attempt to repay, but the parents will have none of it. If the two sides can’t come to an agreement, a family breach could be in the offing. That’s why it’s important for parents to sit down with adult children before advancing any money on their behalf, making sure they understand and agree to the terms of Mom and Dad’s largesse.

Another interesting finding: Parents are shifting their financial support from the down payment to other options. In the past, 65 percent of parents chipped in on the down payment, with 20 percent putting up 90 percent or more of the payment. But in the future, those percentages are expected to drop significantly.

Going forward, 30 percent of the parents said they would pay some of the kids’ other expenses, including student loans, so the kids can save to buy a house. Twenty percent will help with closing costs, and 20 percent more will co-sign on the mortgage.

That last option comes with its own can of worms. Another potentially tricky situation: A third of the parents questioned said the kids can continue living in their basements to save money for a house.

On the flip side, millennial children don’t want to continue living with their parents to save for a house, nor are they interested in getting a second job or asking for money to help offset the cost of a house or a wedding. Rather, they expect to cut back on entertainment and eating out to save money.

Fewer of the parents surveyed will use their personal savings to finance these gifts and loans going forward. More are expecting to refinance their own homes to help out the kids, to take out a loan of their own, or sell their personal residence and use the proceeds to help.

The tiny house movement has taken another step toward legitimacy with the opening of a resort in South Cairo, New York.

Called Think BIG!, the 28-acre property in the Hudson Valley features homes designed by Wisconsin-based tiny home builder ESCAPE Homes. The houses are situated on a cliff that overlooks Catskill Creek in a scenic area with waterfalls and swimming holes.

Despite their small stature, the houses feature flexible floor plans and generous windows. They have queen-sized beds, full-sized appliances and luxurious bathrooms, plus private patios with a dining table, grill and fireplace.

A personal raw food chef prepares meals for visitors using produce grown at the resort. In addition, the resort is dog-friendly, featuring a dog park and outdoor dog wash dubbed the “Laundromutt.”

Speaking of little houses, Amazon is now selling a variety of tiny home kits with prices ranging from $3,500 to about $60,000 -- and it’s doing it all online.

The concept takes inspiration from past decades, when customers once ordered prefabricated housing kits through catalogs from places like Sears Roebuck. Now, the process requires a few clicks of the mouse before the new house is purchased online and ready to be delivered.

Of course, the houses -- ranging from a 75-square-foot cabin to a 725-square-foot timber-frame cabin with a loft -- don’t come with land on which to build them.

If you are against homeowners’ associations, you might want to stick with older houses. More often than not, new homes are built in communities ruled by these groups.

According to data from the Census Bureau’s Survey of Construction, 59.8 percent of all homes started in 2016 were built within properties governed by “formal legal entities created to maintain common areas of a development and to enforce private deed restrictions.” If you live in such a place, membership is mandatory.

The share of all new homes built within a community or homeowners’ association has been increasing for years. In 2009, the share was 47.6 percent; in 2010, 48 percent. Since 2011, more than 50 percent of all homes have been built in properties run by an association. In the Bureau’s Mountain Division, 82.3 percent of all new houses were built in association-run communities. But in the New England Division, the share was a mere 29.5 percent.

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