Precious Space

Together, baby boomers and Gen Xers account for more than 60 percent of U.S. homeowners. While boomers have been the most lucrative buyer demographic for home builders during the last two decades, Gen Xers are catching up fast (see chart).

This presents a challenge for home builders. Boomers are entering retirement and Gen Xers are beginning to raise families, so these two groups are looking for different types of floor plans. Builders can either try to create plans that can be customized for either group or focus on one of them.

The good news is these groups share a common desire: They want to use every inch of their homes. "They don't want to pay for unused space," says Jacky Elliott, marketing director for Darling Homes, a Dallas-based company that has 36 communities under development in Dallas-Fort Worth and Houston. "They want to be able to enjoy every room."

But different life stages give homeowners different ideas about what efficiency means. Many boomers want floor plans that let them age in comfort and luxury, while Gen Xers tend to prefer plans that will accommodate a growing family, according to Sharon Chase, director of design for Levitt & Sons, a Boca Raton, Fla.-based company that's building four communities with a total of 2,600 homes in Atlanta. And while younger buyers don't mind stairs, older buyers respond best to homes with most of the living space on one level.

The bathroom is a good example of the varying needs of these two generations. "Boomers want large walk-in showers rather than shower-tub combos because of accessibility," explains Debbie Marton, vice president of Florida sales for Novi, Mich.-based Crosswinds Communities, which recently broke ground on Grande Oaks on Amelia River, a 47-acre housing development in North Florida. On the other hand, Gen Xers might enjoy having a walk-in shower, but they're not willing to sacrifice the tub, which is handy for bathing young children and for taking relaxing baths during their rare and precious free time. These younger buyers are also demanding private, separate toilet areas to prevent children from barging in at inopportune times.

Retiring boomers want plenty of room for entertaining, with well-appointed kitchens that are open to the family room. "Confined living spaces don't appeal to this demographic," says Allan Cox, a vice president with Denark Construction, which is developing the Estates at Norton Creek, an upscale housing community near Smoky Mountains National Park in Gatlinburg, Tenn., home to many baby boomers.

Boomers also tend to put more importance than Gen Xers on outdoor entertainment areas, such as screened-in porches or sunrooms and large decks or patios with outdoor cooking areas and fireplaces, Elliott says.