The Panoramic is a mixed-use project across the street from the Twitter headquarters.SAN FRANCISCO—Demographics and living preferences are shaping the multifamily sector. The number of millennials (75.4 million) has now surpassed the number of baby boomers (74.9 million). As the largest generation, millennials will be a major force in future housing demand due to sheer numbers and lifestyle choices.
According to a Gallup poll, 27% of millennials are currently married compared with 48% of baby boomers that were married at the same age based on US Census Bureau data. Those who are seeking to purchase a home however may face obstacles, including more stringent lending requirements. According to Experian, millennials have the lowest average credit score of all the generational cohorts.
Baby boomers, on the other hand, do not want to be tied down to larger, underutilized suburban homes as they age. As a result, they are downsizing to smaller rental quarters. Baby boomers also want the flexibility that a multifamily rental can provide so they can pick up and move to be near children and grandchildren.
“Although age may be the great divide between millennials and baby boomers, housing preferences at present are not,” Larry Kay of Koll Bond Rating Agency tells GlobeSt.com.
To meet different lifestyle preferences, micro-unit apartment buildings are on the rise. The first New York City apartment building with only micro-units opened last year on the east side of Manhattan. Micro-units, ideal for youth, singles and seniors, are being designed and built in other cities such as Vancouver, Tokyo, Austin, Phoenix and San Francisco.
In 2011, the San Francisco Housing Action Coalition worked with District 8 supervisor Scott Wiener to pass legislation that allows for the construction of micro-units, also known as “efficiency dwelling units.” The legislation allows for units as small as 220 square feet comprised of 150 square feet of living space, plus a bathroom and kitchen.
One project with micro-units, 333 12th St. in SoMa, received approval which will also include affordable housing units. As a result, the property can rise 35% higher utilizing the state’s density program. Micro-units will not be the silver bullet to solve the city’s affordability problem, but have become one available housing product to improve the efficiency of land that is available for housing, according to the San Francisco Housing Action Coalition.
Another project is the second CITYSPACES micro-apartment project. The Panoramic is a dense (761 du/acre) mixed-use project also located in SoMa (across the street from the Twitter headquarters) at 1321 Mission St. With 120 studios and 40 suites in 11 stories, it has a rooftop garden, public lounges on every floor, and a ground floor cafe/lobby. The project is car free but has a City CarShare vehicle on-site, along with bike storage for residents. The project is 108,000 square feet on a lot size of 9,208 square feet.
The building includes built-in storage, stainless steel Energy Star appliances, energy recovery ventilation, engineered soundproofing, and oversized windows and city views in every unit. Sustainable materials and construction methods were used including high-efficiency lighting and low-flow plumbing fixtures, enhanced indoor air quality, laminated heat resistant glass, and double-gasketed windows, GlobeSt.com learns.
Read on Globest.com http://www.globest.com/sites/lisabrown/2017/03/30/millennials-and-boomers-consider-similar-housing/?kw=Millennials%20and%20Boomers%20Consider%20Similar%20Housing&et=editorial&bu=REM&cn=20170330&src=EMC-Email&pt=California
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