Townhome sales have been increasing across the country and not just in land-constrained urban areas. Suburban sites are also seeing dramatic townhome growth. For instance, in 2016 the Tampa Bay area experienced a 54% increase in townhome development, according to Metrostudy.
Here, Steve Seeger, director of sales and marketing for Lennar’s Tampa division, talks with BUILDER about the company’s success with townhomes.
Are you seeing a demand for new townhomes in your market?
Lennar, which is building homes in over 50 communities across the Tampa Bay area, continues to see an impressive sales pace overall, and townhome sales are no exception. The high level of sales activity in the townhome market reflects what we see as a wider demand for townhomes, both in terms where they are being built and types of buyers. These days, more townhomes are being built and sold in the suburbs, not just in the area’s urban cores. Additionally, townhome demand is starting to come from a wider variety of demographics, including more young families and working professionals.
What is causing this new demand?
There are several reasons: townhomes are an attractive alternative to renting, are a maintenance free way of living, and are generally more affordable than a single-family home of the same size. Townhomes provide access to homeownership that is not only more affordable than owning a single-family home, but also simpler. As an example, much of the millennial generation has adopted a more minimalist lifestyle than past generations, and often don’t need the extra square footage and yard involved with a house.
On the opposite end of the age range, many retirees and baby boomers are choosing to sell their homes and downsize to something smaller and more affordable while the real estate market is still healthy. Townhomes provide a way to do so without giving up homeownership.
How are they influencing the suburbs?
While townhomes have historically been associated with urban living, they are also becoming more popular in the suburbs. In fact, new townhome communities are regularly opening in our outlying areas, as submarkets of bigger cities begin to shift from bedroom communities to desirable live-work-play areas. In the Tampa Bay area, suburban South Hillsborough County, which is about 20 minutes southeast of downtown Tampa, saw townhome starts increase by 168 percent year over year in the third quarter of 2016.
Lennar is having success building townhomes in both urban and suburban areas, and we tailor the product to what buyers want in the area. For example, our West End town home community in Tampa’s urban core features a modern design and upgraded interior finishes.
The company's Hammocks at Summerfield Crossings is located in South Hillsborough County, a growing suburban area of Tampa Bay.
What do buyers want in a townhome?
We have seen that buyers are interested in townhomes for four reasons:
–Affordability. Townhomes allow buyers to purchase in a location that may otherwise be outside of their budget. For example, townhomes may serve as an entry point to luxury master-planned communities for those who are not ready to purchase a single-family home.
–Low maintenance requirements. When it comes to maintenance, townhome ownership offers a different lifestyle than single-family homeownership, and often have homeowners’ associations that take care of landscaping and other maintenance.
–Spaciousness and quality. Townhomes are often just as large as the average single-family home. Some floorplans have up to four bedrooms to accommodate a growing family, and offer more storage space than apartments and condos. They are also often built with concrete block construction, making them more soundproof than most apartments.
–Access to amenities. Many townhome communities provide access to the types of shared amenities that are available in luxury master-planned communities, such as resort-style swimming pools, recreation centers and community clubhouses. Some communities even provide access to golf courses, waterfront docks and boat lifts.
What about HOA fees? Don’t they increase the price of a townhome?
Exact HOA fees depend on the specific community, the maintenance the HOA provides, and the community amenities. Often homeowners find that the benefits of belonging to an HOA outweigh the cost.
