Today's Affordability Benefits of Buying a Multi-Generational Home
Many buyers are seeking strategies to still be able to buy a home in today's climate of escalating housing expenses. Some have discovered a solution in multigenerational living.
When two or more adult generations live together under one roof, this is referred to as multi-generational living. Siblings, parents, and even grandparents fall into this category. Here's an in-depth look at why more purchasers are opting for this choice today, so you can decide if it's suitable for you as well.
Reasons To Buy a Multi-Generational Home
According to a recent study by the National Association of Realtors (NAR), the top two reasons people are opting for multi-generational homes today have to do with affordability (see graph below):
Cost Savings: To save money, around 28% of first-time buyers and 11% of repeat purchasers choose a multi-generational property. Households can make homeownership more affordable by pooling their resources and sharing financial obligations such as mortgage payments, property maintenance, taxes, and upkeep. This is especially beneficial for first-time homebuyers, who may struggle to finance a home on their own in today's market.
More Space: Another 28% of first-time buyers and 18% of repeat purchasers are doing so to get a larger home than they could afford on their own. Some of the repeat purchasers who mentioned this as a primary incentive may be caring for elderly parents while simultaneously welcoming back young adults who have returned to the nest. With everyone pitching in and combining their earnings, that enormous dream home with extra space is now within reach. As the Triangle Business Journal explains:
“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.”
Lean on an Expert
If you're interested in doing the same, team up with a local real estate agent. Finding the ideal multi-generational home is more difficult than finding a standard property. This is because there are more individuals with more perspectives and needs to consider.
You must ensure that everyone has their own place, make room for shared family time, and potentially even develop adjustable rooms for elderly relatives. It's a puzzle, and the parts must fit perfectly. Your real estate agent has the experience and local knowledge to assist you in locating a property where everyone will be comfortable without breaking the bank. 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."
Purchasing a multi-generational house can be a wise method to address some of today's affordability issues. You may make your goal of homeownership more achievable by banding together to share expenditures. If this seems like a possibility for you and your family, let's get in touch so we can help you discover the right house.