More than 90 percent of millennials would choose a single-family home over an equal-priced unit in a triplex with a shorter commute, according to a report from Redfin.
“Even as we’ve seen a revival in many urban neighborhoods, the American ideal of a detached home with a white picket fence and a private lawn doesn’t appear to be changing — at least for the time being,” Redfin Chief Economist, Daryl Fairweather said in a release. “While some cities and states like Minneapolis and Oregon are aiming to create more affordable multi-family housing options by eliminating single-family zoning, as long as Americans are willing to pay a premium for detached homes, developers are likely to continue building them.”
Redfin asked more than 1,400 U.S. residents who are considering buying or selling a home in the next year to choose a home based on the following hypothetical situation: “You find a single-family home with a backyard for the same price as a unit in a triplex (a building with three attached homes). The triplex is smaller, but meets your space needs, and has a shared backyard and significantly shorter commute. Assume the school quality and safety ratings are identical.”
According to the report, 93 percent of millennials would choose a single-family home, as would the vast majority of all other age groups over 25. Regardless of geographic region, more than 85 percent of survey respondents said they prefer single-family homes over a unit in a triplex with a shorter commute.
Redfin said the price premium for single-family homes over comparable condos — those with similar square footage, number of bedrooms and bathrooms and location — was 16 percent in 2019.
In San Jose, Calif., single-family homes sell for 25 percent more than comparable condos (down from 31 percent in 2013); they sell for 19 percent more in Los Angeles (down from 27 percent in 2013).
The report said price premiums have risen in more affordable areas such as Las Vegas (17 percent premium, up from 10 percent); and in Birmingham, Ala. (29 percent, up from 15 percent).
“Homebuyers are more willing to settle for a condo or another unit with shared walls if the home itself isn't the defining feature of why they’re choosing a city,” Fairweather said. “In a sprawling place with an emphasis on private homes like Houston or Las Vegas, people may actually be moving there because there are plenty of affordable, large single-family homes where they can raise a family.”
Redfin said its report found that home searches are more open to single-family alternatives than in 2012. During the third quarter, 33 percent of searchers on Redfin.com limited their searches to single-family homes, down from 41 percent in the first quarter of 2012.