Dive Brief:
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Construction begins this week on a $200 million mixed-use development near Orlando, FL, which will combine a mix of housing typologies and light retail.
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David Weekley Homes and Unicorp National Developments will break ground on Oct. 20.
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Griffin Farms at Midtown will include 260 apartment units and 138 single family and townhomes, as well as a parking garage.
Dive Insight:
The project intends to appeal to younger homebuyers by locating new residential space alongside restaurants and retail, including a yet-to-be named specialty grocer, a fitness center and a Dunkin’ Donuts.
And it’s not alone. Developers nationwide are looking to mixed-use as a way to differentiate multifamily and single-family housing. This week, the San Diego-based Newland Communities will open the 3,600-acre Elyson, a master-planned community in Katy, TX, that can accommodate up to 6,200 homes in addition to a light commercial core containing a café and fitness center, as well as a trail system.
Meanwhile, Hawaii recently approved its first transit-oriented development, a $700 mixed-use tower in Honolulu. It will feature 109 high-end condominiums, with 20 affordable units, as well as a luxury hotel and ready access to the Hawaii Convention Center and the city's planned light-rail station.
But getting millennials to go in on housing isn’t as easy as including a coffee shop in their housing development. A report earlier this month from LendingTree confirmed that student-loan debt continues to keep that generation out of the housing market, in addition to delaying travel, saving for retirement, and purchasing a car. Rising home prices are also a contributing factor keeping the group out of the housing market.
Millennials made $2,800 per month, on average, with 11% of that going to student loans. As of 2014, two in 10 millenials (8.8 million) lived with their parents due in part to the higher costs associated with independent living, according to the NAHB, which noted that based on 2000 homeownership levels, that group would otherwise be contributing 2 million additional households. However, rising rents and low credit rates (for those who can qualify for a home loan) could push that group into the homebuying market soon.