In the current era marked by escalating housing expenses, a significant portion of potential homebuyers is actively seeking strategies to make homeownership a reality. A viable solution that has emerged for many is the concept of multi-generational living.
Multi-generational living refers to the arrangement where two or more adult generations share a common residence, encompassing various family structures that may include siblings, parents, and even grandparents. This article offers a comprehensive exploration of the factors driving the increasing popularity of this housing option among homebuyers today. By delving into these reasons, you can evaluate whether it might be a suitable choice for you as well.
Reasons to Purchase a Multi-Generational Home
As indicated in a recent survey conducted by the National Association of Realtors (NAR), the primary motivations for the current trend in multi-generational living predominantly revolve around affordability (see graph below):
Savings on Expenses: Approximately 28% of first-time buyers and 11% of repeat buyers are opting for multi-generational living to cut down on expenses. By consolidating their resources, households can distribute the financial obligations, such as mortgage payments, utilities, property taxes, and maintenance costs, making homeownership a more economically viable option. This is particularly advantageous for first-time homebuyers who may encounter challenges affording a home independently in today’s competitive market.
Expanding Living Space: Another 28% of first-time buyers and 18% of repeat buyers are embracing this arrangement to acquire a larger home they wouldn’t be able to afford on their own. In the case of some repeat buyers, this decision may be attributed to their responsibility for caring for older parents while simultaneously accommodating young adults who have returned to the family home. With everyone contributing and combining their financial resources, the aspiration of a spacious home with more room becomes attainable. As highlighted by the Triangle Business Journal:
“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.”
Rely on a Professional
If you share an interest in this, consider teaming up with a local real estate agent. Discovering the ideal multi-generational home isn’t as straightforward as hunting for a conventional residence. This is due to the fact that there are more individuals involved, each with unique opinions and requirements that must be taken into account.
It’s essential to ensure that everyone has their designated living space, allocate areas for communal family time, and potentially establish adaptable zones for elderly family members. It’s like solving a puzzle, and the components must align. Your real estate agent possesses the necessary expertise and local insights to assist you in locating a home where everyone can reside comfortably without straining your budget. As MoneyGeek.com puts it:
“Having a good multigenerational property can improve the prospects of success when living with loved ones. A multigenerational home should fit the specific needs of most family members regardless of age or health. Speaking to a real-estate agent can help you gain clarity and locate a fit.”
Bottom Line
Acquiring a multi-generational home presents a sensible approach to address the affordability hurdles prevalent today. By joining forces to distribute costs, you can render your homeownership aspirations within reach. If this resonates with your family’s needs, consider reaching out to a local real estate agent who can assist you in identifying the ideal property that suits your requirements.
Sources:
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NAR – https://www.nar.realtor/blogs/economists-outlook/all-in-the-family-multi-generational-home-buying
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Triangle Business Journal – https://www.bizjournals.com/triangle/news/2023/04/01/why-choose-multigenerational-living-in-the-triangl.html
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MoneyGeek – https://www.moneygeek.com/mortgage/resources/multigenerational-family-finances/
