I came across a story on HousingWire about Lennar and their approach to what they call "home within a home" design, and it caught my attention because it speaks to something I'm seeing shift in how families think about housing. According to the reporting, Lennar is ramping up production of their Next Gen floor plans, which feature a separate living suite with its own entrance, bathroom, kitchenette, and bedroom area. This model has been around for over a decade, but the builder is now scaling it more aggressively in growing markets like Arizona and Florida to capitalize on changing household preferences.
The demand for this type of housing is very real. According to Pew Research Center data cited in the piece, 22 percent of Americans were living in multigenerational households in 2024, which is a meaningful jump from where we were just a few years prior. What's particularly interesting for the market is that Sotheby's International Realty estimates homes marketed as multigenerational commanding a 22 percent price premium, which tells you there's genuine buyer interest beyond just affordability concerns.
Lennar's leadership sees this as a permanent shift rather than a temporary trend. The company's Southeast Florida Division President explained to HousingWire that while multigenerational living has always existed, buyers are now approaching it more intentionally. He noted that the reasons families want these homes go well beyond caring for aging parents; it includes adult children, extended family arrangements, and various other household configurations. He pointed out that while housing affordability plays a role, the bigger picture involves demographic, economic, and lifestyle factors all reinforcing the trend together.
From a design standpoint, these Next Gen homes typically range from about 2,100 to over 3,900 square feet, and the separate suite is usually positioned on the first floor. The appeal is that it can function almost like its own independent residence while still being connected to the main home, giving families the flexibility to live together while maintaining privacy and independence. Beyond just their dedicated Next Gen line, Lennar is also rethinking other design elements across their homes, like where bedrooms sit, how bathrooms are accessed, and how different spaces connect to one another.
Lennar isn't alone in this either. HousingWire noted that other major builders like PulteGroup have launched their own multigenerational concepts, Toll Brothers offers similar designs across their communities, and newer builders are also entering this space.
What I am seeing locally in the Bay Area and East Bay is that this trend resonates deeply with our market dynamics. Housing costs here have families thinking creatively about how to make homeownership work, and multigenerational living is becoming a more mainstream conversation among buyers I work with. Whether it's adult children staying closer to home, parents and grandparents joining a household, or extended family coming together, these dedicated suite designs offer practical solutions that acknowledge the reality of how people actually want to live today.
