The demand for multi-generational homes has risen in the last few years, as families are finding it more financially feasible to live together and share resources. According to the National Association of REALTORS® 2015 Home Buyer and Seller Generational Trends Report, 13% of all homes purchased in 2015 were multi-generational homes.
Why is this becoming more common? Here are some reasons:
Boomerang Adult Children
Many Millennials are establishing a career and still paying off student loans. They can’t afford to live on their own, so they move back home with their parents.
Baby Boomers want to keep a close eye on their aging parents. To save money on separate housing or assisted living facilities, many are opting to have their parents live with them.
Grandparents are moving in with their adult children to help care for their grandchildren. This not only helps offset childcare costs, it also enables bonding among the generations.
Many families come from countries where multi-generational housing is customary. When they move to the U.S., they want to continue living together under the same roof.
Benefits of Multi-generational Living
Cost Savings — Increased usage doesn’t have to mean increased maintenance costs. Multi-generational living allows more family members to share household care and expenses, like the cost of an AHS Home Warranty, which helps reduce the cost of home system component and appliance repairs and replacements.
Resale Appeal — Homes that accommodate multiple generations are in demand. The separate quarters can be used to accommodate family, guests, a nanny, a home office/business or even a renter.
Peace of Mind — Knowing that aging parents have companionship, that small kids are being cared for by loving grandparents, or that an adult child can save money to pay off student loan debt can bring the whole family peace of mind.
What is the Multi-generational Buyer Looking For?
These buyers, who are typically between 50 and 60 years old, would like a home to offer privacy and separate living space for each generation, as well as large communal spaces, like living rooms or family rooms. Since these homes are not easy to find, many families remodel a home to accommodate their needs with separate bathrooms, kitchenettes, entrances and laundry rooms.
If you haven’t been approached by a multi-generational buyer, chances are, it will happen eventually. Take time to get to know your clients and their specific living situation and needs. Research builders and architects in your area who currently offer multi-generation housing floor plans or who can customize existing floor plans to accommodate a multi-generational family. Also, be sure to familiarize yourself with local zoning regulations so you’re prepared to inform clients about them.