While typically small in square footage, accessory dwelling units deliver affordable housing at a time of great need.

The Need Is Real

Reasons for interest vary but the most prevalent may be that ADUs are making a dent in the country’s housing supply shortage. “They’re not the only solution but one tool in the toolkit,” says developer Denise Pinkston, a partner of San Francisco–based TMG Partners and president of Casita Coalition, a Los Angeles–based group whose goal is to increase the number of small homes throughout California. “We’re in favor of finding ways to help people gain a home since the down payment needed has eclipsed the ability of most working families,” she says. Spevak agrees: “They’re a way to build less-expensive housing without public subsidies since they’re often less costly to rent or buy than other neighborhood options.”

For older adults on fixed incomes, ADUs allow aging in place, which otherwise may be difficult, says Harrell. “Our neighborhoods are 80% single-family housing,” he says. ADUs also serve as guest houses, home offices, quarters for grown children and dwellings for natural disaster victims. (ADUs differ from tiny houses, which are under generally less than 400 square feet, often atop wheels, and not permitted on residential properties for the long term.)

Additionally, ADUs can be a way to earn rental income or make a property more flexible as family needs change, says Portland, Ore., broker Aryne Blumklotz of Aryne + Dulcinea with Living Room Realty. Her business partner, broker Dulcinea Myers-Newcomb, added a 458-square-foot prefab ADU on her property to house her father in 2018. It may become a rental to help pay for her children’s college tuition.

Where ADUs Are Taking Off

Since 2000, when AARP issued the first edition of a model state act and local ordinance, more states have adopted legislation that effectively allows ADUs and preempts local prohibitions. AARP’s Livability Index tracks statewide ADU legislation. The index credits California, Florida, Hawaii, Maine, Montana, New Hampshire, Oregon, Rhode Island, Vermont, Washington and the District of Columbia for having legislation that encourages or supports ADU development.

California started by allowing conversions of existing structures with a building permit, regardless of local zoning laws. Over time, it removed such barriers as owner-occupancy requirements, homeowners association prohibitions and limited parking requirements. It reduced fees and finally permitted state-allowed freestanding ADUs in a yard of a single- or multifamily site, regardless of local standards, says Pinkston. It also allowed ADUs in unused areas of multifamily buildings like attics or bike rooms.

“In just a few years and through a pandemic that slowed other housing types, the California results have been impressive,” Pinkston says. “More than 65,000 ADUs have been added across its cities, suburbs and rural areas, all starved for workable housing options.”

National Association of REALTORS®
Reprinted with permission

What pays off the most when it comes to curb appeal?

Ninety-two percent of REALTORS® recommend that sellers improve their curb appeal before listing their home for sale, according to a survey from the National Association of REALTORS® and the National Association of Landscape Professionals. What pays off the most when it comes to curb appeal? Of course, every project and every market is different, but here’s the estimated cost recovery on the top outdoor remodeling projects identified in the 2023 Remodeling Impact Report. Cost estimates are from landscape pros; cost recovery estimates are from REALTORS®, members of NAR.

1. Standard lawn care service: 217% (percent of value recovered)

• Project: Complete six standard seasonal applications of fertilizer or weed control on 5,000 square feet of lawn.
• Cost estimate: $415
• Estimated cost recovered: $900

2. Landscape maintenance: 104%

• Project: Mulch, mow, prune shrubs and plant about 60 perennials or annuals.
• Cost estimate: $4,800
• Estimated cost recovered: $5,000

3. Outdoor kitchen: 100%

• Project: Install an inset grill, stainless steel drawers, ice chest sink and concrete countertop with veneered masonry stone.
• Cost estimate: $15,000
• Estimated cost recovered: $15,000

4. Overall landscape upgrade: 100%

• Project: Install a front walkway of natural flagstone; add two stone planters, five flowering shrubs and a 15-foot-tall tree.
• Cost estimate: $9,000
• Estimated cost recovered: $9,000

5. New patio: 95%

• Project: Install a backyard 18-by-16-foot concrete paver patio.
• Cost estimate: $10,500
• Estimated cost recovered: $10,000

National Association of REALTORS®
Reprinted with permission

As a way to deliver quality housing faster, communities are embracing modular options.

There have never been more options available in home building than there are today, and yet site-built construction remains the predominant method of building single-family homes. According to analysis from the Urban Institute, site-built (also known as stick-built) construction accounts for 97% of new single-family homes. In fact, over the last two decades, factory-built homes fell from 5% to 3% of single-family home production, peaking just before 2008.

Despite this trend, factory-built homes—also referred to as prefabricated, or “prefab,” homes—offer unique opportunities to address the nation’s housing supply challenges. “Factory-built has the potential to not only increase supply but also solve the implied mismatch,” says Michael Neal, principal research associate and equity scholar at the Urban Institute. The mismatch Neal refers to is the difference between what’s being built and what area households can afford.

“Prefabricated houses are the best-kept secret in America,” says Sheri Koones, a prolific writer on the variety and value of prefab homes. Koones regularly encounters a general lack of knowledge and prevalent misconceptions among consumers. Prefabricated homes encompass several different types of factory-built housing, including modular, panelized and pre-cut. A distinguishing factor among prefab methods is the degree of assembly before the pieces arrive on site. Panelized and pre-cut packages require more assembly, whereas modular units are nearly complete.

One common confusion is the difference between modular and manufactured homes. While both modular and manufactured homes are assembled in factories, they are built to two different codes. Manufactured homes, previously called “mobile homes,” are built on permanent metal chassis in compliance with the federal Manufactured Housing Construction and Safety Standards, also called the HUD code, which preempts state and local codes. Modular homes are built to the same International Residential Code, or IRC, as site-built homes and must conform to state and local regulations.

Modular homes are being built and delivered across America. “We’re designing houses for literally all around the country,” says Geoffrey Warner, principal architect and owner of Alchemy, based in St. Paul, Minn. In Chicago, Joshua Braun, founder and CEO of Kinexx Modular Construction, observes that “modular has been very popular on the West Coast. Primarily what has been driving modular is really the cost of land and the cost of construction. I think that people are starting to realize that modular makes sense because we’re experiencing labor shortages across the country.” Koones shares similar data: “It’s very popular in Washington, Oregon, California. A lot in New England … not so much in the South, where there is cheap labor.”

There is a surprising diversity in modular’s suitability for different sites. The suburban environment is an obvious application, but builders have had success with narrow urban in-fill and large commercial developments. Modular construction offers advantages for rural and remote sites, too, including islands, and has found a niche in off-grid designer dwellings.

The Santa Rosa, Calif., home is essentially two boxes. A public box includes a living room, dining room, and kitchen. A private box, not shown, includes two bedrooms and two baths.

‘An Engineered House’

Modular housing’s defining characteristic begins with design, Warner says. “It’s box space as opposed to, say, barn space. Modular is basically saying, I’m going to build all these rooms, finish everything outside and inside as much as possible and stick that on a truck—a small house made either from one box or multiple boxes.”

Consumer demand for prefabricated homes is hampered by stigma about quality and customization. “People assume that because it shows up in pieces, the quality is less than” a site-built home, Braun says, “and that’s actually completely the opposite.

“Most of my colleagues would agree that modular homes are actually a superior product because you’re getting an engineered house,” Braun adds. “Imagine your home. Now attach a crane to it, pick it up, shake it around, and then put the whole thing back down. That’s essentially what a modular home has to endure. Every modular builder makes some semblance of a box, and the box has to move around the shop, be put onto a truck, driven down the road, and then be put onto the foundation by a crane. In order to maintain the rigidity of the box, it has to be engineered to withstand the rigors of transport. We build a two-story home, and our same material could be used to build a 15-story building.”

Working in a factory has its advantages. Builders can control variables that could compromise and delay site-built construction. “Because we’re building in a controlled environment, our material, our homes, don’t see a drop of rain on the inside,” Braun said.

Greater Sustainability

A tight building envelope is critical for energy efficiency. “When a house is being built on-site, it’s built from the outside in because it needs to be closed up,” says Koones. “You have a chance that the wood could get wet, and at some point, it’s going to turn and twist. That makes a place where air can infiltrate. Modular houses are built from the inside out and all of the components are kept dry.”

Modular construction, by process and design, lends itself to greater sustainability than site-built construction, Koones says. In addition to a tight building envelope, the factory-floor environment allows for more insulation to be packed into walls, roofs, and everywhere in between. “When you build from the inside out, you have an opportunity to put in more insulation, around all the outlets and everything,” Koones said. A highly insulated home is a passive strategy to save on energy costs over a lifetime.

Proponents say precision building on an assembly line also reduces waste during construction.

The three-bedroom Harrison Row townhomes showcase Kinexx’s mission to help developers deliver affordable housing with good design.

Speed and Savings

The primary benefit of factory-built construction is efficiency. “Your workforce is all going to this one place every day,” Warner says. “Your kit is right there, and you can take advantage of industrial machinery.”

“Our goal is 90 days or less,” says Braun. “We build a home in about 7 days; our homes are 10 modules each; we deliver each in typically about 6 hours. Then it typically takes us 45 to 60 days to finish it on-site.”

While a custom modular home isn’t necessarily cheaper than a stick-built one, the opportunities for savings multiply with volume-based building. “In our first full year of operation, we delivered 43 affordable homes in the city of Chicago,” says Braun. “These are neighborhoods that desperately need housing on the South and West sides.”

Kinexx was tapped by Structure Development and Fain’s Development to complete the Harrison Row Townhomes project on Chicago’s West Side after the first seven stick-built townhomes were mired by delays and cost increases. In quick time, Kinexx delivered 28 duplexes with three to four bedrooms each at a sale price of about $245,000, compared to Chicago’s median $315,000 home price.

In Koones’ latest book, Prefabulous for Everyone, she addresses America’s housing shortage head-on and profiles a wide variety of homes to illustrate the possibilities of prefab solutions.

One home she describes, the Ashford Weehouse, designed by Geoffrey Warner, is a resilient rebuild of a family home burned in a California wildfire. The artistic three-modular-unit house was designed with future fires in mind and features fire-resistant exterior elements.

Braun knows that “Stick-built buildings are never going away.” But for modular to succeed, consumer education must be a top priority, and land use regulations and construction financing will have to adapt.

“After working on this for 25 years, it’s not a panacea, but it does have utility,” Warner agrees. “I think we can eventually make a difference in terms of how housing and buildings, in general, are produced.”

National Association of REALTORS®
Reprinted with permission

Infinitely recyclable glass is going mainstream in core building and design materials.

These days, you don’t have to look far to see upcycled glass. Caterers and restaurants use Mason jars for cocktails and lemonade. DIYers repurpose wine bottles into candle holders or melt them down to create coasters or spoon rests. Glass can also be recycled for large-scale home products like countertops, wall panels and sculptured art.

By some measures, glass is one of the most sustainable materials on the planet. According to the National Institutes of Health’s Chemical Waste Services (CWS), it can be recycled infinitely without losing its purity or durability. That means today’s clients—more than 50% of whom are interested in sustainability, according to NAR data—are increasingly attracted to recycled glass products in the home.

Recycled Glass 101

In most cases, recycled glass is glass that has been crushed and reheated. Crushed glass can also be mixed with other materials to make concrete products or terrazzo countertops.

But one of the most sustainable things to do with old glass containers is reuse rather than recycle them, says Ravindra Duddu, Ph.D., associate professor of civil and environmental engineering at Vanderbilt University.

“Glass is heavy compared to plastic, so the carbon emissions from transporting glass containers is higher compared to plastic,” he explains.

Of course, he says recycling glass can still help reduce environmental problems stemming from overburdened landfills. So, if you won’t reuse it, recycling the glass is better than throwing it away.

Recycled Glass Trends in Home Design

Recycled glass, like cork, is a time-tested material that builders and designers continue to reinvent.

Here are a few ways recycled glass is used in new homes and home projects:

Recycled Glass Tiles

“Recycled glass is easily incorporated into shower walls and kitchen backsplashes, either as a featured accent or the main event,” says interior designer Claudia Martin.

She says recycled glass tiles can also be installed to create a feature wall or add architectural interest to spaces. Outside, recycled glass tiles can make a pool pop, create dry “river” scenes through landscaping, or line a footpath with color.

Recycled Glass Mosaics

You’ve probably seen colorful recycled glass used to create mosaic-like art on tabletops, vases, or light fixtures.

Martin says designers love creating custom mosaic designs for their clients. She suggests using recycled glass mosaics to frame a mirror or piece of art.

Recycled Glass Countertops

Recycled glass countertops are unique, easy to care for and environmentally friendly, says Martin.

Crushed glass countertops have the aesthetic advantage of a natural material (rather than a laminate pattern-topped countertop). They are also more affordable than granite, quartz or marble slabs, making them a viable option for a budget-conscientious homeowner.

Recycled Glass in Concrete Construction

“While glass has been used in construction for centuries, the utilization of waste glass in concrete as an aggregate … is a more recent application,” says Duddu.

Using crushed glass to make concrete mix is still evolving as a potentially cutting-edge sustainable material. Duddu and others have studied the material in laboratory settings. He says it could be a way to limit glass waste, save energy, and reduce the environmental impact of mining and carbon emissions from transporting other natural building materials. However, the research done by Duddu along with his collaborators has shown that including glass particles in concrete mixes can affect strength and durability.

Bottom line: As interest in sustainability rises, real estate professionals and builders can expect to learn about new building materials and processes.

Finding Recycled Glass Resources and Retailers

If you or a client want to use recycled glass in an upcoming home project, both Martin and Duddu suggest looking online for products and companies. Your options for recycled glass production continue to expand.

“If you are looking for recycled glass in a tile application such as a bathroom or kitchen backsplash, Ocean Mosaics has a lot of options,” says Martin. “If you are looking for glass countertops, IceStone is a great resource.” She adds that Etsy is a great website to find recycled glass décor and original art pieces.

“One new start-up that I have interacted with is Vitroform3D, where they use 3D printing technologies to turn glass waste into engineered stone products as a replacement for tiles or granite countertops,” says Duddu, adding that the company has even received funding from the U.S. Department of Energy.

National Association of REALTORS®
Reprinted with permission

Multifamily Series: What’s Trending in Outdoor Amenities.

3 Key Takeaways

• Swimming pools remain a favorite outdoor amenity, across asset classes and climates.
• Residents should weigh whether they’ll use amenities since the cost is factored into prices.
• Some amenities, like parks, views and access to public transit, are integral to location and quality of life.

For years, developers have likened amenities to icing on a cake. When considerations like location and price are comparable, renters and buyers alike may make their decision based on the amenity package. As growing awareness of the mental and physical health benefits of fresh air and nature continues, many offerings focus on the outdoors.

Outdoor amenities depend on many factors: the property’s size, location, configuration, and so on. Most developers and consultants take inventory of what’s already in a neighborhood, ensuring their building’s amenities account for what’s nearby and what the community needs, says Mary Cook, founder of commercial design firm Mary Cook Associates in Chicago. “Is it across from a fitness center with a pool that can be used, and who will live in the building?” she asks. “Is it mostly tech workers doing remote work in the building or medical and educational personnel heading off each day?”

A rooftop terrace at 706 Ocean Parkway in Brooklyn, N.Y.

A building’s asset class also affects choices. Luxury condos and Class A rental buildings typically offer more, and fancier, options. But many developers focused on smaller and Class B, affordable and workforce housing deliver similar favorites. Douglas Enclave, a 199-unit affordable rental building in Miami developed by The Astor Companies, includes an amenities deck on its fourth floor, with a pool, deck, sun chairs and views of downtown.

​​​​​Due to cost and supply issues with land, labor and materials, many developers now prioritize selections. Catering to residents’ wants and needs is important, says Jacob Goldman, principal and founder of Beam Architects. “We’re hyper-focused on understanding the amenities that hold the most appeal for end-user residents. By doing so, we can deliver the highest value to our developer client and ensure a quality living experience,” he says.  

An aerial view of a pickleball court at Woodmont Way in New Jersey

Help clients decide what matters most to them by first understanding what multifamily spaces offer.

The Latest and Greatest

The more innovative an amenity, the better it is to attract residents who may seek what other buildings don’t have. The amenity may also reflect a developer’s values. Beekeeping is adding a buzz to buildings designed around about environmental conservation, with managers often retaining a third-party vendor to add apiaries and tend to bees. The Best Bees Company offers residents (as well as hotel guests and office tenants) a sustainability experience they can engage in, says Paige Mulhern, creative director. The Boston-based company installs hives, manages and researches bees and offers events such as honey tasting, wax crafting and educational hive tours in more than a dozen cities.

Pools

There’s less differentiation these days in what’s available by climate, evident in outdoor pools installed even in cold-weather locations. Developer Henry Torres, CEO and president of The Astor Companies in Coral Gables, Fla., says that “nine out of 10 times a pool is the most important amenity.” Developer Ryan Shear, managing partner of Property Markets Group in Miami, agrees. “Most developers today would be crazy to do a building without a pool. But the amount of real estate square footage and dollars put toward them varies,” he says.

A rooftop pool E11EVEN tower in Miami, Fla.

In Miami, his company is currently building the E11EVEN Hotel & Residences, which will set a new standard with its Las Vegas–style extravaganza of 18 pools on a 40,000-square-foot, double-decker deck 120 feet in the air. Affordable and workforce projects follow the trend. In the San Diego area, Edward Ring, CEO of New Standard Equities Inc., added a pool because the building had no water view and required a drive to get to the ocean.

Views and Parks

Views are played up by outdoor amenities. BEAM Architects’ chief designer Naftali Silverberg took care in designing a nine-story building on Ocean Parkway in Brooklyn using glass railings on the rooftop to avoid obstructing water views.

At the 500 Crawford building in downtown Houston, across from Minute Maid stadium where the Astros play, the Finger Companies designed its Class A, mid-rise rental building with a retractable roof to make viewing the park easier from a sixth-floor lounge and balcony. “You can hear the crowd roar. One ball hit out of the park landed on our property,” says Hunter Wagner, executive vice president of asset management.

A rooftop seating area overlooking the city skyline

In Bremerton, Wash., Ring renovated a Class B building for workforce housing with a new deck to savor views.

Parks also command interest due to interest in greenery. Mansueto Office transformed The Belden-Stratford in Chicago’s Lincoln Park neighborhood into a luxury multifamily rental with a renovated roof deck. The owner also considers the adjacent Lincoln Park Zoo and conservatory part of its outdoor amenity package, says Ted Fahey, vice president of real estate. Similarly, Blue Onyx Companies bought a historic building to adapt and expand in Paterson, N.J., because of the Passaic River site and adjacent park.

Passive Versus Active Use

In the ideal scenario, developers design spaces with comfortable furnishings and lighting for those who want to relax. For some renters and buyers, outdoor spaces with a focus on leisure are just as important as spaces designed for activity. Alison Mills, vice president of design and development at CRG, says her firm likes to break large areas into smaller zones such as a place to grill, which might be next to an indoor lounge. Developers also favor opportunities for shade and sun in different climates, she says. The Finger Companies’ Quin rental building in suburban Schaumburg, Ill., gained a 2.5-acre residents’ park with benches, lighted paths, walking trails and two dog parks. The company often brings in food trucks.

Recreation Deck at Chapter at the Streets in St. Charles, Mo.

Activating outdoor space tends to keep residents outside for longer periods and in different seasons. A variety of activity spaces are popular, including putting greens, oversized movie screens, greenhouses and vegetable gardens, pingpong tables, corn hole games, and playsets. “Many outdoor amenity spaces become the equivalent of a playground,” Shear says.

Outdoor space also creates an opportunity for community building within a complex. Devin Wirt, co-founder and chairman of the board for Connexus Living, has advised communities how to activate spaces to bring residents together. “Owners and operators have seen that if you have five or more friends in a community, then your resident is more likely to renew their lease,” Wirt says. Louis DeVos, vice president of property management with Woodmont Properties in Fairfield, N.J., says his firm has conducted focus groups to hear what residents value and find missing, then makes changes. He says activity-based amenities like walking trails or instructor-led yoga classes are in; pet spas hold less value for some.

Parking

Parking has become an amenity, especially in urban buildings where street and garage spots are at a premium or costly. Outdoor surface lots are more common in many buildings while covered or underground parking is favored for condos and Class A rental buildings. More buildings are adding EV charging stations or the infrastructure to install them later, DeVos says. CEO Levi Kelman of Blue Onyx included one free parking spot per unit in his Paterson building since he knew paying for space would burden residents.

National Association of REALTORS®
Reprinted with permission

While artificial intelligence can’t replace the human brain, tools like Midjourney are supercharging the home design process.

These days, there’s no shortage of news about artificial intelligence. Some industries are dominated by praise and excitement for how AI can make life easier, while other professional sectors lament the loss of jobs and human touch. The truth is usually somewhere in the middle, and the world of home design is no exception.

So, what does AI have to do with home design? And how might it shape the future of interiors? Experts offer insights on how AI is streamlining their workflows and expanding their creative potential.

Generative AI 101

Generative AI is the term for any artificial intelligence that can come up with new text or images in response to human prompts. You’ve likely heard of ChatGPT, a text-based generative AI. Type in a prompt such as, “Write an email that explains biophilic design,” and ChatGPT will spit out a message complete with a subject line, greeting, description of the design style and a signoff.

There are many uses for ChatGPT, but designers are more interested in images than text. Imagine coming up with a cool theme for a bedroom or a fun concept for a new type of sofa. If you can describe it in words, a generative AI tool like Midjourney or DALL-E can create an image. For interior designers, that’s like having a talented robo-artist available at all times.

“With AI apps like Midjourney, you can just type in what you’re thinking, and the machine does all the work for you,” says Annilee B. Waterman, a Dallas-based artist, interior designer and certified professional building designer. “It pulls in all the information that could have taken you hours to hunt down on the internet and quickly creates custom, unique images that you own and can use anywhere.”

The True Story of an AI-Designed Sink

“I was recently given the opportunity to collaborate with Midjourney’s artificial intelligence bot to design the world’s first AI sink, named AILA,” explains Leslie Carothers of Savour Partnership, a digital marketing consultancy at the forefront of educating home and design professionals on how to use Midjourney AI.

Earlier this summer, luxury kitchen and bath product brand Thompson emailed Carothers with an idea: If she could design a sink with AI, Thompson would create it in the real world. Thrilled with the idea, she got to work. Designing the sink and getting the green light for production by Thompson’s copper artisans took less than two weeks. Now in production, the copper sink will eventually be unveiled in February 2024 at the National Kitchen and Bath Show in Las Vegas.

“I predict these types of collaborations will become the new normal once manufacturers see and understand how fast Midjourney makes the product ideation process,” says Carothers. “I also predict that any manufacturer who offers custom capabilities like Thompson does will have many more designers and retailers wanting to use Midjourney to create and then offer bespoke products to their clients and customers on their own websites.”

Looking to the Future

For many real estate professionals, AI still looks like a wild frontier—a creative sandbox more than a reliable trade tool. But AI is quickly going mainstream. Specifics are hard to predict, but it’s almost inevitable that AI-assisted designs will become more prevalent in interiors and architecture in the next decade.

“I predict AI will be used by almost everyone as part of their home design conceptualization process,” says Carothers.

Still, Waterman emphasizes that AI is a tool—it’s designed to be used by professionals, not replace them. She says AI is great for quickly showcasing ideas, but it can’t design in a vacuum. And while AI can generate a blueprint, Carothers reminds that it cannot build the product or room or home or cover practicalities like material durability or HVAC.

“AI cannot deliver on the most important factor for most consumers who want a well-designed home: the human connection to make sure that all the issues that come up in the execution process are resolved in as stress-free a manner as possible,” says Carothers.

AI Tools for Real Estate Professionals

Artificial intelligence isn’t going away anytime soon. Here are some tools that might help streamline your work as a real estate professional:

• Epique AI. Designed specifically for real estate businesses, Epique AI can help you quickly generate new realtor biographies for your website, real estate newsletter copy, inspirational quotes for your Instagram page, and more.
• Virtual Staging AI. Attractive staging for listings is easier than ever with Virtual Staging AI, which automatically adds furniture and decor to your uploaded photos of empty rooms.
• RealityNinja AI Listing Description Generator. Accelerate the process of writing listing descriptions with RealityNinja’s AI, which creates multiple description options after you input a property’s basic information (such as square footage, location, and key features).

National Association of REALTORS®
Reprinted with permission