What Is A Next Gen® Home?

The rising costs of homeownership have created a new way of living for many people. Friends and siblings are buying homes together, multiple generations are living under one roof, and others need a home that doubles as a rental. Home builders have taken notice and responded with home-within-a-home floor plans, pioneered by Lennar's Next Gen® home.

Lennar set the stage for home-within-a-home floor plans with its Next Gen® home concept. The plan features a bedroom, kitchenette, private entrance, bathroom, and living area, with some plans including laundry and a garage. The idea is that homeowners get a separate home under one roof, making it ideal for multiple families or a rental.

Sharing a home with others isn't a new concept, whether it's living with roommates or adding a full mother-in-law suite. But Next Gen® homes focus on dedicated floor plans that create multiple homes in one from the ground up.

The First Next Gen® Home And Beyond

Lennar introduced its first Next Gen® model home in 2011 in Phoenix, Arizona. The primary catalyst for the home was to provide a solution for multiple families sharing a house. It gave everyone a chance for privacy and independence, even though they were under one roof.

Soon enough, other builders started creating their own versions of this next-gen home. K. Hovnanian and D.R. Horton introduced multi-generational home designs, such as the “ Extra Suite+” and “ MultiGen” plans. Like Lennar’s Next Gen® home, the plans included separate living spaces with kitchenettes, bedrooms, and a private entrance within a single-family home. 

Why Get A Next Gen® Home?

Some people need to share the costs of home ownership, for example, siblings deciding to buy a home together to get their foot into the market. In other cases, adult children need to move back home, or aging parents need to move in with their kids.

However, these aren’t the only reasons this next-gen concept works. It also offers solutions for homeowners who run a business from home, need rental income, or host frequent guests throughout the year.

What Are The Main Features Of A Next Gen® Home?

So, what makes a house a Next Gen® home or something similar? Five key characteristics create a multi-generational floor plan.

Private Entrance

Residents can come and go without disturbing others who live in the home. The private entrance connects to their separate living quarters.

Separate Living Space

There is a living room or den space where those living in the unit can hang out and relax. It’s a place to watch television, play games, or engage in other activities without needing to access the main living room.

Full Bathroom

You’ll usually find a full bathroom dedicated to this separate living space. It provides privacy for everyone.

Bedroom

The home-within-a-home has at least one bedroom with closet space. 

Kitchenette

Some next-gen or multi-gen floor plans may include a full kitchen, but they at least have a kitchenette. The kitchenette usually includes a refrigerator, microwave, sink, and storage space, allowing residents to prepare and cook their own meals.

Optional Spaces In A Next Gen® Home

Additionally, some floor plans offer options for a dedicated laundry room or laundry area. You might have a laundry closet setup or a washer and dryer in the bathroom, etc. Another option on some plans is a garage for the suite’s residents, so they have private parking and extra storage.

Six Reasons A Next Gen® Home Might Be The House You Need

You might think that if you don’t share your home with another family, there is no reason to consider a Next Gen® home. However, a separate living space in your home could be helpful in quite a few different situations.

Multi-Generational Living

This is by far the most common reason for getting a Next Gen® home. Sharing your home with adult children, grandparents, or extended relatives is much easier when everyone has their own private space.

Multiple Families Sharing The Costs Of Homeownership

This one is somewhat similar to multi-generational living, but not quite the same. House sharing is when people mutually agree to purchase a home together (beyond the typical couple). For example, two siblings buy a home together because they can’t afford to purchase one solo.

Or, perhaps, they buy a house together, understanding that one day their parents will be moving in and they can share the job of caring for them. Another example is two friends deciding to purchase a home together, so they can get into the housing market without stressing their budgets.

Setting Up A Home Business

If you work from home or run a business from your house, a separate space keeps things from getting muddy. This isn’t just helpful for your personal life, but also from a logistical standpoint when it comes to things like work hours and taxes.

Rental Income

Some homeowners can only purchase a home if they know it can generate income to help with the mortgage. If you get a house with a separate living suite, you can set it up as a rental and use the rental income to help offset your housing costs.

Frequent Visitors

If you host overnight guests frequently, then a separate living space is an ideal way to maintain your privacy. Guests also appreciate having their own space, especially if they’re staying for an extended period.

Need For A Dedicated Space

A separate living space is great for setting up the ultimate home gym or yoga studio if you prioritize health and wellness. If you have teenagers, they can have the ideal place to hang out without infringing on your quiet time. Yes, these examples may be more of a luxury, but if it’s something you value, then a next-gen-style house could be the answer.

The Benefits Of A Next Gen® Home And Things To Consider

Not sure if a Next Gen® home is right for you? Check out these benefits and special considerations before you decide.

The Benefits

• Privacy And Connection — Families and friends enjoy the closeness of living together without the friction of being in each other’s business all of the time.
• Flexibility — As your lifestyle changes, the way you use the separate living space can adapt with it. For example, it can go from being a teen hangout to your adult children’s temporary home to a rental unit.
• Added Value — A house with a flexible layout and separate living suite often has a lot of appeal when it comes to resale value.
• Affordability — Sharing one property can save you significantly on utilities, mortgage payments, and maintenance. It can also help ease the costs of things like babysitting or elder care in certain situations.

Potential Considerations

• Higher Upfront Costs — You may save in the long run, but you’ll likely need more money up front. Next Gen® homes and similar units are typically priced higher than standard models because of their added square footage and features.
• Resale Potential Still Hazy — A home with separate living quarters will likely have added value. But the resale possibilities are still hazy. The demand for next-gen style homes is growing, but not everyone wants a two-in-one living arrangement. Therefore, you may have a smaller pool of interested buyers.
• Local Zoning Rules — Know the rules in your area before you buy. If you’re banking on using the separate space as a rental, you might not be able to, depending on zoning restrictions.
• Increased Maintenance — Simply put, more square footage means more upkeep. However, if you’re splitting the costs of maintenance with another family or homeowner, this might not be an issue.

The Future Of Next Gen® Living

A Next Gen® home isn’t likely to be a fleeting trend or quirky addition to builders’ floor plan options. The way people approach home ownership is changing, and these multi-generational and home-within-a-home concepts are rising to the challenge.

Although not for everyone, homes that offer separate living spaces under one roof are beneficial in many situations. It works for multiple families sharing a single-family home, using it as rental income to help pay the mortgage, or setting up a home business.

Still, even if none of these scenarios apply, some homeowners are gravitating to the next-gen plan. They like the idea of a separate space for things like a home gym or a dedicated game room and hang-out space for older children. No matter what the reason, these two-in-one homes expand the possibilities of homeownership for more buyers.

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