Smaller Homes That Live Large: Value Engineering Reimagined

(Photography: Nathan Gregory, PlanOmatic; courtesy NHTI)

There’s an overarching need for new solutions in housing around density and attainability. We've been digging into a series of projects and ideas that address that need and illuminate solutions. The Builder’s Daily has partnered with the team at the New Home Trends Institute by John Burns Research and Consulting to spotlight communities and developments from its DesignLens library that might serve as inspiration to other homebuilders across the country.

‘A Logical Solution’

The ability to pivot in response to what consumers want and need is a necessity for homebuilders. While designing smaller homes can sometimes be a challenge in terms of municipal zoning and density requirements, it’s one that’s worth solving for both buyers and builders as the need for more attainable housing continues to grow.

In response to the rapid rise in home prices, elevated mortgage rates, and deteriorating affordability, smaller square footage homes have emerged as a logical solution for builders and buyers,” says Oliver Radvin, senior vice president, consulting at John Burns Research and Consulting. “Builders can deliver smaller homes to price-sensitive consumers at a lower sales price, while still hitting their historical target margin.”

Despite hearing that some municipalities are averse to smaller-lot development, Radvin says there is a definitive trend toward building smaller homes that live large, and it’s happening across the spectrum of homebuilders from the entry-level/affordable end to move-up and luxury. For example, he notes that LGI’s earnings calls directly state a shifted emphasis toward smaller floor plans, while Toll Brothers continues to lean into what it refers to as “affordable luxury,” where the builder offers luxury features and amenities in smaller, simpler homes to assist with affordability.

Cozy Cottage Living

In North Carolina, a successful example of going smaller and denser is the Chatham Park Cottages by Fresh Paint by Garman Homes. The collection of 30 single-family detached single-level and two-story homes sold out within one year of opening. The units and site plan are designed to create a sense of community with shared green spaces and front-porch living.

The Chatham Park team plotted the homes to bring residents together around the shared green while also having their own semi-private outdoor space with the front porches,” notes Jenni Nichols, vice president of design at John Burns Research and Consulting.

The porches are large enough for residents to gather on, and planter boxes are included along the railing for herbs or flowers.

The smallest plan in the collection is Hot Chocolate, at 826 square feet. The single-story home has two bedrooms, two bathrooms, and no garage. The front door opens into an open great room with a vaulted ceiling, which helps the space feel larger.

The homes have great features like dining niches and creative storage solutions like a pantry with a barn door to optimize space,” Nichols says. “Designers who design smaller homes that are livable think about all parts of the home and focus on the key features that consumers want, like a great kitchen and a connection to the outdoors.”

Inspiration was taken from tiny homes, and Garman integrated built-ins, such as the dining area with bench seating, to optimize the functionality of the space. The team made sure to include key features that consumers want such as quality finishes and ample storage. Despite being the smallest plan, this home still includes a walk-in pantry.

The builder also was sure to include abundant natural light in the homes. The secondary bathroom features a high fixed window that brings light in while preserving the privacy of the space.

The majority of the homes are situated around shared green space, and 23 of the 30 cottages have assigned parking spots instead of garages. The remaining seven homes have a single-car detached garage. The builder initially expected more objection to the lack of garages in the community, but buyers received it well and said it was worth the cost decrease if they have their own parking spaces.

As with everything, there are geographic nuances and target buyer nuances. I haven’t heard of any pushback or challenges from consumers,” Radvin says about the cottages. “This is a good example of builders adjusting their strategy to meet consumers where they are.”

PROJECT DETAILS

Chatham Park Cottages, Pittsboro, NC
BUILDER: Fresh Paint by Garman Homes
ARCHITECT: Garman Homes
INTERIOR DESIGNER: Rustic Charm Design
SALES START DATE: March 2020
TOTAL HOMES: 30
SQUARE FOOTAGE: 826 square feet to 1,376 square feet

For more project details, inspiration, or insights, reach out to Jenni Nichols at jnichols@jbrec.com.