Why Single Level Homes Are Becoming More Rare, and More Valuable

Although ranch style homes were first built in the 1920s, they became very popular in the 1940s and were the style of choice for returning veterans who were starting their families after World War II.

The ranch style home was known for it's low-slung, single level design with notions of the American Western period of working ranches. Despite the fact that these homes required more land than a split level home, they were less expensive to build thanks to cheap land prices and their clean and simple design, in contrast to the previously popular styles like the Queen Ann.

The hundreds of thousands of young families that occupied these dwellings also found that life was more convenient in a single level home not having to continually be confronted with a staircase to access the rest of the home.

What was then a convenience for a young family has now become a necessity for an aging population. Now that baby boomers are reaching a certain,  shall we say, maturity, they are finding that the aging body doesn't like stairs (unless you're talking about the Spanish Steps in Rome).

This housing requirement coming from a slice of our national population that is typically better off financially has helped single level homes outperform split level home on a dollars per square foot basis.

To demonstrate the additional value, I looked at all the single family residences that were sold in San Leandro last year. There were 136 split level and 496 single level homes sold. The median price for the split level homes was $223/sq. ft. compared to $261/sq. ft. for a single level home.

Despite the renewed popularity of single level homes, builders choose not to construct this design due to the costs involved, such as the additional land required and the cost of a more expansive foundation. Additionally, in today's energy conscience society, cities encourage high density construction due to land use requirements.

How does this preference reveal itself on the front lines? As realtors we experience anecdotal information every weekend as we greet a growing number of homebuyers who are downsizing from their large multi level homes in the Oakland Hills to single level homes in comfortable communities across the Bay Area (like San Leandro).

As builders are forced to ignore this slice of the market due to financial and zoning constraints, these homes will become more rare (remember supply and demand) and hence they will likely continue to out perform their multi level neighbors.