There are many factors that can help explain the rise of multigenerational living. According to the 2020 Profile of Home Buyers and Sellers by the National Association of Realtors (NAR), 12 percent of home buyers purchased a multi-generational home (same as last year) to take care of aging parents, because of children over the age of 18 moving back home, and for cost-saving.
Likewise, experts cited the growing immigrant population, economic, and cultural factors that are fuelling this trend. The Asian and Hispanic populations are growing steadily, and they are more likely than whites to live in a multigenerational household, according to the Pew Research Center report.
Skyrocketing rents and home prices, especially in some cities, are also affecting a growing number of people. Many of them decide to move back to their homes, especially those who are struggling to get good-paying jobs or still paying off student debt. Also among them are millennials who want to save up more money to be able to return to school or save for a down payment for a home.
Likewise, adult children offer their home to their aged parents as a convenient and cost-effective option. They can save up on child care expenses while helping with caregiving, which helps family members to save money. These are just some of the practical, economic, and emotional benefits that a multigenerational living situation gives to these families.
However, other cities impose stricter rules since they want to draw a line on whether a home is designed only for family use, as opposed to being used as a rental.
For families who have decided they want this kind of arrangement and are starting to look for a home, find a real estate agent or broker who has experience in selling multigenerational homes and also knows the area well. Your agent can help make the process smooth-sailing since he or she should be familiar with the multifamily market and can better understand your family’s special arrangements.
