Stronger Together

What We Can Learn About Multigenerational Households

In the last three years, our world, perception, and reality have changed so drastically that our new reality can often seem filled with new and unexpected challenges. One of the significant benefits that COVID brought to the real estate industry was a booming market, low-interest rates, and a bidding war that seemed to have no end. Unfortunately, our entire economy grew and pushed out many families on the brink of home ownership, making new and unusual arrangements necessary for many.  While the economy or financial issues are not the only reason we see multigenerational households, it is one of the most vital factors, according to the PEW research center. 

Multigenerational households are three or more generations living under one roof, such as parents, kids, and grandparents. Why is this topic important today? MG households have quadrupled since 1971! This means that today more than ever, we are sharing spaces, but not simply for financial reasons related to COVID; it is also because people are staying in school longer, postponing or forgoing marriage, or becoming caregivers for their older generations.  

Whatever the reason may be, multigenerational households are not only beneficial, but they can also be stressful, convenient, and rewarding! 

So, the real question is how do we make sharing space with our extended families ideal!?

We found that the ideal living space provides everyone with enough living area to have alone time while still enjoying the benefits of shared meals or overall togetherness. This means having the right number of bedrooms, additional living areas, and, most importantly, separate bathrooms. In a standard household, this can be achieved with a mother-in-law suite, where you have a second bedroom with or adjacent to a full bath. 

There are, however, additional concepts for those who would like closeness with aging parents, or parents who still enjoy independence. Homes are built with different entrances, where a small living area is separated from the house. On the other hand, a casita on the main property offers complete separation from one part of the family and gives the family in the casita full independence. Casitas can be equipped with a kitchen, bath, and all the general home amenities on a smaller scale. 

On the financing side, if purchasing property together, all parties will have to be pre-approved for the lender to add them to the mortgage or use their income. Remember that using income from anyone on a loan will also bring in debt. Because family members can give large amounts of funds towards purchasing a home, a substantial gift could help pay for part of the property without adding a credit score or debt associated with any particular family member. A suitable lender can walk you through the process if more than one family purchases together.  

For mutual peace of mind, ensure that you all sit down, make house rules, and set expectations. Will utilities, groceries, or mortgage be split? Will you be having regular meals together and assigning responsibilities? Set boundaries, and make weekly meetings to keep communication flowing. Enjoy the time you have with loved ones. Time is the one thing you cannot buy, borrow or steal. 

Reference: 

https://www.nar.realtor/blogs/economists-outlook/full-house-the-rise-of-multi-generational-homes-during-covid-19