How Multi-Generational Homes Can Make Housing More Affordable in 2023

In the current landscape of rising housing expenses, numerous buyers are seeking strategies to make homeownership attainable. For some, multi-generational living has emerged as a viable solution.

Multigenerational living is an arrangement in which two or more adult generations live together in the same home. This can include siblings, parents, or even grandparents.

Reasons To Buy a Multi-Generational Home

Based on a recent survey conducted by the National Association of Realtors (NAR), the primary motivations for individuals choosing multi-generational homes today are primarily centered around affordability, as illustrated in the graph below:

Cost savings is a major reason why first-time homebuyers and repeat buyers are choosing multigenerational homes. By pooling their resources, households can share the financial burden of homeownership, such as mortgage payments, utilities, property taxes, and maintenance. This can make homeownership more affordable, especially for first-time buyers who may be struggling to afford a home on their own in today's competitive 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:

“Multigenerational living allows people to buy a larger and more expensive home than they could afford on their own by combining their incomes, credit scores, and down payments.”

Lean on an Expert

If you're considering multigenerational living, it's important to work with a local real estate agent who specializes in this type of home. Finding the perfect multigenerational home can be challenging, as there are more people involved with the decision and everyone has different needs and preferences.

You need to make sure everyone has their own space, find room for shared household time, and possibly even create adaptable areas for older relatives. It's like solving a puzzle, and the pieces must fit just right. Your real estate agent has the expertise and local knowledge to help you find a home where everyone can be comfortable without breaking the bank. As MoneyGeek.com phrases it:

"Owning a well-suited multi-generational property can enhance the chances of successful living with your loved ones. Such a home should cater to the unique requirements of family members, regardless of their age or health. Consulting with a real estate agent can provide you with insights and help you find the perfect match."

Bottom Line

Buying a multigenerational home is a smart way to overcome affordability challenges in today's housing market. By combining incomes and sharing expenses, families can make homeownership more attainable. If you're considering this option, connect with a local real estate agent who can help you find the perfect home for your family's needs.