Generational Home Buying : How to Find a Home That Fits Your Whole Family

Once seen as a necessity during financial or caregiving crises, multigenerational living is increasingly becoming a choice. A 2022 National Association of Realtors (NAR) study found that 14% of homebuyers were purchasing multigenerational homes, close to an all-time high. Families embrace this option for various reasons, from saving on living expenses to caring for aging relatives.

The rise in multigenerational living coincides with higher home prices and a desire for seniors to age in place. Research shows that people in these homes enjoy better health, financial security, and longer lives. However, to make multigenerational living work, the right home is essential—one that offers space, privacy, and comfort for everyone.

Here’s a guide to finding the right home for your multigenerational family.

🔸 What to Consider Before Shopping

Before you begin your search, discuss your goals and needs with your family. Are you pooling resources to buy a bigger home or sharing caregiving responsibilities? Understanding your collective “why” can help focus your home search.

Additionally, consider long-term aspects like accessibility. If older family members are part of the household, seek homes designed for their aging needs, such as those without steep stairs or narrow hallways. Don’t forget the financial implications; luxury homes often come with increased maintenance expenses.

🔸 What to Look for in a Multigenerational Home

Once your budget is set, consider the size and layout that best suits your family. Privacy is critical, so homes with extra bedrooms and bathrooms or layouts with separate living areas are ideal.

Possible options include:

- Large homes with multiple rooms and ensuite bathrooms

- Homes with an accessory dwelling unit (ADU) or basement apartment

- Multifamily units, like duplexes or triplexes

For families with aging members, a ground-floor unit, like an ADU, can provide a practical solution for aging in place, avoiding expensive care facilities.

You may also consider homes that can be expanded or retrofitted for multigenerational living. While renovations can be costly, they might be worthwhile. We can help you evaluate your potential and connect you with trusted contractors.

🔸 How to Buy a Multigenerational Home

Buying a home with a family can be complicated, especially if multiple people are applying for a mortgage. Sometimes, co-buying makes it easier to qualify for loans, but it's essential to understand each family member’s role in the purchase.

Key considerations:

- Who will be on the mortgage and title?

- Can everyone financially contribute, even if they don’t qualify for the mortgage?

- Consider potential tax and estate implications if a family member later decides to leave.

Since the number of co-borrowers can be limited by lenders, you may need to explore alternative financing options for larger groups. It’s also crucial for each co-buyer to check their credit scores early to avoid delays.

We can refer you to mortgage professionals, tax advisors, or estate planners who can guide you.

🔸 Bottom Line

Multigenerational homes are an excellent way to combine resources, enhance family support, and create a healthier living environment. If you’re considering this lifestyle choice, we can help you explore options and find a home that fits your family’s needs.

Sources:

National Association of Realtors

SSM-Population Health

Better Homes and Gardens

Apartment Theory

Realtor Magazine