The newest real estate trend in the Sacramento region: 5-bedroom ‘mega-homes’

In the just-opened North Natomas community of Northlake, buyers can purchase something their parents never dreamed of: a mass production home with five bedrooms.

That’s unusual. But such jumbo-sized homes are becoming a more popular niche of the Sacramento region’s real estate landscape as housing construction ramps up amid the COVID-19 pandemic, fueled in part by the new teleworking trend as well as an influx of deep-pocketed Bay Area emigrees looking for elbow room.

The number of homes in the region with five or more bedrooms has jumped from 18,000 to 48,000 in the last 20 years, with more on the way.

That notably includes a growing number of new homes where one of the bedrooms is, in fact, a semi-separate in-law apartment with its own kitchenette.

Bringing mom or dad home

What’s going on? There are several trends intermingling at one time in what has become a hot market, local real estate and housing officials say.

For some years, families have been grouping three generations under one roof. That has been a trend among some ethnic groups for years, but has expanded in the last year, real estate agents say, to include families of all origins.

Some who can afford it are buying larger homes – or having another room built on their house – so they will have a place for their aging parents to live.

Part of that, says Realtor Gail DeMarco of Turner DeMarco RE/Max Gold real estate agency, is because the COVID-19 pandemic hit hard in congregate care facilities. Death rates were higher, and families were not allowed in-person visits in many cases.

DeMarco said she just sold a 7,000-square-foot home in Folsom for $1.5 million to a couple who plan to house their elderly father under their roof.

Realtor Heather Ostrom of Coldwell Banker said the bedroom trend had been going on for a handful of years prior to COVID: “They want the parent in house to keep an eye on them. COVID accelerated that.”

In particular, in the new Northlake community, home builder Lennar is including what it calls NextGen homes, which include a small apartment embedded in the front corner of the house with a separate exterior entrance – but also an interior door to the rest of the house.

The larger homes in Northlake cost in the $600,000 to $700,000 range, out of the price range for many would-be buyers.

At the same time, millennials now moving into the marketplace are still looking for less expensive homes. Northlake will have smaller houses in the mid-$400,000s, said Lennar’s Michelle Velky. The builder calls Northlake a “lifestyle” community with a clubhouse and man-made lakes, and varied housing from 1,774 square feet up to 3,940 square feet.

Homes as offices, gyms

Ironically, though, as of last year, nearly half of the region’s five-bedroom homes – 46% – had three or fewer occupants.

More recently, amid the COVID-19 pandemic, more buyers are looking for homes with extra bedrooms that can serve as home offices and home gyms.

“People are working from home now and want the space,” said Michelle Velky, a marketing vice president for Lennar.

Until COVID hit, though, many larger homes and more expensive homes sat on the market without being sold, in part because younger buyers with limited incomes were focused on smaller, more affordable houses.

Bigger houses notably require more work over time and higher utility costs, appraiser Ryan Lundquist said. But as people spend more time in houses during COVID-19, they are spending less money elsewhere and are willing to spend more on a comfortable living situation.

High-end Sacramento agent Nick Sadek of Sotheby’s International said the surge of buyers from coastal areas is having its impact. Once slow sellers, million-dollar homes in Sacramento are moving more quickly than ever, he said. “People from the Bay Area are asking for bigger homes.”

And home buyers who can afford it are looking for “segmentation,” Ostrom said. “Everybody into their own space. You need quiet areas for offices and distance learning.”

Where are big homes near Sacramento?

Many of those homes are where you would expect them to be, in enclaves where wealthy families hire designers and architects to build a custom, one-of-kind home.

Granite Bay bordering on the west shore of Folsom Lake in south Placer County stands out.

About 18% of homes in Granite Bay have five or more bedrooms. Only six other communities in California among those with 5,000 or more residents have more five-bedroom homes.

The average household size in Granite Bay is 2.81 people.

Placer County, one of the biggest home building regions in the state in the last 20 years, leads the Sacramento region in mega-homes. About 8.5% of homes in Placer County have at least five bedrooms.

Across Folsom Lake from Granite Bay sits El Dorado Hills, the region’s other major enclave of steroidal homes.

In El Dorado Hills, about 14% of homes have at least five bedrooms. The average household size in El Dorado Hills is 2.95 people

But the more interesting increase may be in Sacramento County, where about 4.1% of homes have at least five bedrooms. That’s roughly 24,000 homes.

This story was originally published January 27, 2021 at 5:00 AM.