Sensing an opportunity with aging baby boomers and the economy, Hearthstone Homes is getting into the business of building villas.
Hearthstone, traditionally Omaha's biggest home builder, will enter a market cornered by Celebrity Homes, offering another choice for buyers wanting a smaller home or less outdoor maintenance.
The single-story ranch villas will offer options for wider doorways, a wheelchair ramp in the garage and a sun porch. In return for a monthly fee, the homeowners will have lawn care, landscaping and snow removal handled by a townhome association and trash removal covered.
Hearthstone's move comes at a time when Omaha's home-building industry has struggled from a slump in sales and a sluggish economy.
But Hearthstone is taking note of baby boomers moving into the market. One of the builder's main targets are people 45 and older who want a smaller home after their kids have moved out, said Neil Smith, a vice president for Hearthstone.
At the same time, housing trends are shifting toward smaller homes. Since 2006, the median size of a new home has dropped 7 percent, according to the National Association of Home Builders. The organization says the buyers today are influenced by tighter lending standards, less equity in existing homes to roll into a new home and less interest in buying a home as an investment.
Hearthstone's three new models join the builder's existing lines of smaller starter homes and larger step-up models.
Smith said Hearthstone will be able to cover the full life cycle of a home buyer.
“They're at the next stage of their life where this just ties in,” he said.
The base models each will offer two bedrooms, two bathrooms and a two-car garage at a cost of $132,000 to $142,000, not counting the price of add-ons. The main living area will range from about 1,350 square feet to about 1,600 square feet with an option for a finished basement. The association fee will be $125 a month.
Hearthstone will start building the homes in two existing subdivisions: Palisades at 168th Street and Cornhusker Road near Gretna and Iron Horse in Ashland, Neb., which also represents an expansion of the builder's core market. The builder has blocks of lots, totaling about 40, in the two subdivisions, Smith said, and plans to offer the model in new subdivisions of its own in the future.
Smith acknowledged the existing competition for townhome buyers. But he said, “Typically, they're not done to the same level of affordability that we typically do.”
One villa builder, for instance, is marketing plans ranging from $185,000 to $450,000.
Celebrity sells villas and attached townhomes in six subdivisions around the metro area and is marketing about 45 homes for sale in various stages of construction, with discounted prices ranging from $129,900 to $159,400. In past years, Celebrity's townhome construction accounted for about half of the builder's annual activity, based on its building permit numbers.
Celebrity and Hearthstone play off each other in marketing their products. Celebrity showcases an array of included features, such as appliances or blinds, while Hearthstone pitches a variety of add-on choices.
Smith said Hearthstone's villas will offer flexibility in what people build.
Contact the writer:
402-444-1128, jeff.robb@owh.com
Hearthstone Homes will offer choices for buyers who want smaller homes. These are the base model single-story ranch villas.
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