Why More People Are Buying Multi-Generational Homes Today

Why More People Are Buying Multi-Generational Homes Today

Today, 17% of homebuyers are opting for multi-generational homes, which involve purchasing a property with parents, adult children, or other relatives. This figure represents the highest level ever recorded by the National Association of Realtors (NAR). The recent increase in multi-generational living is driven by several factors.

The primary advantages of choosing a multi-generational home have evolved over time. Traditionally, these homes were favored to facilitate easier caregiving for aging parents. While this remains a significant reason, another compelling motivator now is affordability.

According to the latest data from the National Association of Realtors (NAR), cost savings are currently the main reason why more people are choosing to live with family. The increasing cost of homeownership has made it difficult for many individuals to afford a home independently, prompting families to combine their financial resources to facilitate property purchases.

By merging incomes and sharing expenses such as mortgage payments, utility bills, and other household costs, multi-generational living provides a practical solution to financial hurdles that might otherwise make homeownership unattainable. Rick Sharga, Founder and CEO at CJ Patrick Company, further elaborates on this concept:

“There are a few ways to improve affordability, at least marginally. . . purchase a property with a family member — there are a growing number of multi-generational households across the country today, and affordability is one of the reasons for this.”

Opting for a multi-generational home might not only make homeownership more affordable but could also allow you to purchase a larger property than you could on your own. If you find yourself needing more space but are deterred by current market rates and prices, this approach could be a viable solution to still acquire the room you need.

Beyond the financial advantages, living in a multi-generational home can also foster closer family relationships and strengthen bonds. This living arrangement naturally creates more opportunities for quality time together, enhancing family dynamics and support systems.

Bottom Line

If you're thinking about relocating, considering a multi-generational home could be a valuable option, especially if your budget is tight on its own. 

Let's have a conversation about your specific needs and work together to find a home that accommodates your family's unique circumstances. This approach could provide the financial flexibility and space you require.