SAN RAMON — The Home Builders Association of Northern California wants to help its members to focus on urban infill, mixed-use and transit village development.

"It's a segment of the market that, frankly, we underserved," said Joseph Perkins, president of the trade group. "Those who build three-quarters of the new housing in Northern California are preponderantly aimed at single-family suburban buyers."

Instead, Perkins said their new office opened at 660 Mission St. in San Francisco would be a beacon to those builders specializing in mid-rises and transit-oriented development. "It's for builders who didn't see a place for themselves at HBANC," he said.

Local experts say the building trend is following the demographics and the money.

"The millennials, or Gen Ys, are going to move into college and the housing market in the next 10 years," said Stephen Levy, director of the Palo Alto-based Center for the Continuing Study of the California Economy. "The other huge group are folks like me, over 55 and sold the single-family home when the kids moved out who live in denser condo and townhouse developments because I don't want to move to Tracy, but I don't want a big house anymore."

While some Baby Boomers may hold onto large homes, others will looking to buying an infill unit, he said, and that's where the market is going.

"They are tapping the market for folks with a good deal of income or assets who can afford to

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pay market prices," he said.

According to a 2005 report by the California Business, Transportation and Housing Agency and the Institute of Urban and Regional Development at UC Berkeley, the state has up to 1.5 million units of infill housing potential in the next 20 years.

Signature Properties projects include Oakland's 288 Third and Broadway Grand, two mid-rise condominium complexes and Renaissance in Concord, a collection of 309 condos and town homes built on a former autodealership. The project, which counts as a transit village, is about four blocks from a BART station.

"Only about 20 percent of the population are what we would call traditional buyers, Mom and Dad and kids," said Mike Ghielmetti, president of Signature Properties, based in Pleasanton. "That means the other 75 percent of the population needs to served."

Barbara E. Hernandez covers real estate. Reach her at 925-952-5063 or bhernandez@bayareanewsgroup.com. Read her real estate blog, Property Lines, at www.ibabuzz.com/propertylines.