We know that young adults are living with their parents. That’s been happening at an increasing rate over the past ten years.
But the really surprising trend I’m seeing is people in their 30s and 40s, with children of their own, making the decision to live with Mom and Dad. Only this time they are buying the house together.
In 2015, the National Association of Realtors (NAR) found that multi-generational buyers represented 13 percent of the home buyers in the market.
It makes sense if you think about it. Roughly two-thirds (or 67 percent) of baby boomers and Gen-Xers are still feeling the effects of the financial crisis. Gen-Xers have their own kids now and they want a bigger house. Baby Boomers have a lot of their wealth tied up in real estate and they are looking to downsize.
Their needs align. You might wonder what it would be like to live with your parents, your spouse and your kids. Does it really work?
Well, a few of my clients are doing it and they say it is a win-win. The benefits are financial as well as having extra help with the children. Clearly – it is not for all personalities or family dynamics but those who commit to it seem to be happy.
Here are the most common scenarios we’re seeing –
Pooling resources to buy a large enough home where the whole family can live comfortably – It’s no secret that it can be difficult to afford a large house in the DC area, especially close-in. The additional funds could give a young family the buying power to have that 4500 square foot house-plenty of room for everyone to have their own space and not be on top of each other.
Seasonal shared living – Snow birds want to minimize their presence in the area but rather than keeping a condo locally, they direct those funds toward their adult child’s housing purchase so that they can spend part of the year living here with their extended family and the rest of the year at their house in Florida.
Relocating a single parent – Some clients decided to move a single aging parent who found themselves alone half-way across the country. Rather than trying to care for them long-distance or rely on siblings and family members (who may not be as responsible or financially stable) they bought a home large enough to accommodate the parent as well.
These are just a few of the ways people are purchasing homes with extended family in mind. Others are choosing to modify or expand their current home to accommodate another family member. This is definitely not the right fit for everyone but I do believe we’ll be seeing more of this trend in the coming decade.
Do you think you could live with extended family?
If you are thinking about making this kind of move for yourself or your parents I’m always available to answer your questions [email protected]
I have earned the “Seniors Real Estate Specialist” (SRES) Designation by the National Association of Relators. SRES is a program designed to address the unique housing needs of Seniors.