There’s an emerging trend in the real estate market and it’s called multi-generational homes. These are properties that accommodate multiple generations of a family under one roof. Gone are the days where adult children move out of the house and never return. Today, more families are choosing to live together and this has led to the rise of multi-generational homes. According to a recent study by the National Association of Realtors (NAR), the two top reasons people are opting for multi-generational homes today have to do with affordability. In this blog, we’ll explore why and how this trend is happening.
Cost Savings: About 28% of first-time buyers and 11% of repeat buyers are deciding on a multi-generational home to save on costs. By pooling their resources, households can share the financial responsibilities like mortgage payments, utilities, property taxes, and maintenance, to make homeownership more affordable. This is especially helpful for first-time homebuyers who may be finding it tough to afford a home on their own in today’s market.
More Space: Another 28% of first-time buyers and 18% of repeat buyers are doing it because they want a larger home they couldn’t afford on their own. For some of the repeat buyers who listed this as a main motivator, it could be because they find themselves taking care of older parents while also welcoming back young adults who’ve returned to the nest. With everyone chipping in and combining their incomes, suddenly, that big dream home with more space is within reach. As the Triangle Business Journal explains:
“Choosing multi-gen living allows people to purchase a home much larger than they could afford on their own by leveraging the combined income, credit and a down payment of those that they will be occupying the home with.”
Cultural Diversity: In many cultures, it’s standard for extended family members to live together. However, in the United States, this has not been the norm until recently. According to NAR, the trend towards multi-generational homes is growing among Asian and Hispanic households, where living together across generations is more common. As the US becomes more diverse, it’s likely that this trend will continue to grow.
The trend towards multi-generational homes is a reflection of the current economic and social landscape. Families are looking for cost savings, flexibility, and more space, and this has led to the rise of the multi-generational home. As housing costs continue to rise, this trend will likely continue, and developers may start to design properties that are specifically tailored to multi-generational living. Multi-generational homes offer a way for families to stay connected, share resources, and provide mutual support. Whether you’re a first-time buyer or a repeat buyer, if you’re considering multi-generational living, it’s important to seek advice and guidance from a knowledgeable real estate agent who understands the unique needs of multi-generational households.