Communities | 09.15.2023

Basement Apartment Options on New Homes

At Arive Homes, we pride ourselves on staying on top of recent design and home trends. One of the most recent and significant home trends is adding a basement apartment to new homes in Utah. Why are new homes with basement apartments becoming more popular? There are so many reasons that we decided to write a whole article about it!

The housing climate in Utah is supportive of this recent change, too. In response to the housing shortage in Utah, lawmakers have recently approved a measure that allows homeowners to rent out the basements in their owner-occupied single-family homes, making it easier than ever to have a rental space in your home. If you are interested in adding a basement apartment to your new build, here are a few reasons why you most definitely should.

  1. Basement apartments are perfect for multi-generational living

    Multi-generational living is on the rise in the United States, with more families choosing to live with multiple generations under one roof. In fact, Pew Research Center estimates that the number of Americans living in multi-generational housing is about four times larger than in the 1970s. While families choose multi-generational living for many reasons, financial restraints and housing shortages are the most common. Elderly adults can also physically and mentally benefit from living close to their children.
    Building new homes with basement apartments is ideal for multi-generational living because it allows your family to live under one roof, helps family members be more financially stable, and gives them the separate space they need to be comfortable.

  2. You can afford a bigger home

    Did you know that adding a basement apartment will give you an increase on your mortgage, giving you the option of building a bigger home? Instead of paying for the basement apartment out of pocket or making your main living space smaller, lenders give you the option to increase the mortgage for the rental space. In order to qualify for this change, the basement must be completely finished along with the rest of the house. Many people see this as a bonus and an easy way to afford to add a basement apartment to the home.

  3. Renters will help you pay the mortgage

    One of the main reasons why homebuyers choose to add a basement apartment is because having a rental space makes good financial sense. Not only will new homes with basement apartments help you pay off the mortgage, it’s a passive way to make money for years to come.
    Because of the housing market and shortages, recent rental rates in Utah are becoming more substantial, meaning you can rent out the basement for a decent chunk of your mortgage payment. For many homeowners, this is one of the main reasons they rent their basement apartment.

  4. Basement apartments help first-time homebuyers afford a new home

    Many first-time homebuyers in Utah cannot afford to build a new home because of the cost of housing. However, first-time homebuyers choosing to add a basement apartment to their new build can more easily build a new home because of the additional income it will bring. Some loan products allow you to use 75% of your projected rental income to qualify for a better mortgage, which means you get to use income that you’re not even making yet. Instead of buying a more affordable starter home and moving a few years later as families and budgets grow, this helps new homeowners stay in their homes longer.
    For more information about this invaluable mortgage hack, contact us and we will get you in touch with our preferred lender.

  5. Increase your home’s resale value

    Adding a basement apartment is a wise home investment that instantly boosts the resale value of your home. Not only does a basement apartment increase the square footage of your home, but it also adds the opportunity for potential rental income. It’ll help you receive a competitive price when you sell your home and an impressive return on your initial investment.

Build Your Dream Home–and Basement Apartment–with Arive Homes

If you want to build a new home with a basement apartment, let Arive Homes do the work for you. We can customize your home to fit your lifestyle and create the ideal basement apartment space for your needs.

Plan your future online with our handy Utah home floor plan customization tool. You can browse our finished basement plans and visualize your space, whether you’re planning for one, two, or even three bedrooms.

Contact us today to learn more about how we can help you create a finished basement apartment.