08 Nov Singles: An Underserved Homebuying Market
Homes are traditionally geared towards the concept of a multi-person household and therefore are built and priced in a way that potentially alienates single-person buyers. Yet, according to Builder, 28% of households are made up of singles, and that number is growing. It may be time for builders to begin designing homes with this increasing populace in mind.
Single-person homebuyers don’t need the amount of space that a family may need, nor do they have the benefits of two incomes that some families have. Therefore, a more specific product that is more space and cost appropriate to singles in necessary. But, as David Friedlander mentions, less than 1% of the housing stock is studios and only 11% are one-bedroom homes.
Most single-buyers are a mixture of millennials, divorcees, and widows/widowers. Because of this, the desire is for homes and neighborhoods that easily promote a sense of community, from rooftops for hosting to outdoor amenities that create connection. While these desires are more often associated with multi-family style rentals, increasing costs of rent are turning traditional renters to consider homeownership as a more feasible way to stay in the dense urban areas that draw them.
So, with this growing group of home buyers, what builders will be the first to cash in on an underserved demographic? What are your thoughts on the subject? We’d love to hear from you! Reach out via our contact page here.