Lennar Homes (Lennar.com), the nation's largest homebuilder, offers a Next Gen model with a separate living space. The Next Gen models have typically been less than 25% of Lennar's business. However, a growing new trend in families living together has made Next Gen homes popular. In response to the demand, Lennar's Mystic in Vistancia will offer more Next Gen homes for sale.
Gen Z Changes the Playing Field
As Gen Z deals with significant pandemic-level rental rates, a record number of Arizona families have found Next Gen homes an alternative, leading to the largest sales jump in Lennar’s history.
As the Gen Z population struggles with today's prohibitive rental rates, buyers seek new ways to save on home purchases. Lennar sees this as a major reason why consumers are buying the Next Gen, which offers a combined residence but with privacy for both families. Adult children moving back in with their parents is the quickest growing Next Gen demographic and at the highest percentage ever seen historically.
Consumers are purchasing Next Gen homes as a space for adult children returning to the nest or if they cannot afford a home on their own. For many, buying this ‘home within a home’ is more of an economic decision.
“We have never seen Next Gen home sales in the 35% range,” says Alan Jones, Division President of Lennar. “It’s changing how we are doing business and developing our new communities.”
Lennar’s statistics fall right in line with national figures. A 2022 study found that nearly half of all young adults live at home in the U.S.—a historical high not seen since the Great Depression, according to the U.S. Census Bureau. Analysts estimate that about 48% of young adults between the ages of 18 and 29 are living with parents due to factors like high rental rates.
“As pricing and interest rates increase, we have seen more families combining resources to purchase a Next Gen home,” said Matt Wolf, Vice President of Lennar Mortgage. “It helps with qualifying and monthly expenses based on combining incomes, property tax bills and insurance costs. We see many families with boomerang kids or aging parents strongly considering the Next Gen to solve their housing needs."
Elan McMonigal’s family is one of those statistics. They purchased a Next Gen as their daughter is a teacher and couldn’t qualify to buy on her own. “The Next Gen still allows our separate privacy while helping our kids save money to make a better living,” McMonigal said. “We are so grateful the Next Gen exists for parents who want to help their kids move into home ownership.”
Lennar's Next Gen Models
Lennar pioneered the Next Gen model in Phoenix in 2011. The Next Gen offers a private suite providing all the essentials multigenerational families need to work, learn, live and have a sense of independence. In addition to living space for adult children, families use the Next Gen suites as home offices, classrooms and separate businesses.
You can view the Lennar Trillium Plan, the company's Next Gen floorplan, at Signature at Mystic in Vistancia.
The Next Gen concept fits so many needs, whether it’s due to economic constraints, a need for a home office, kids returning home or aging parents. — Alan Jones, Division President of Lennar
