Multigenerational Living Gaining Appeal Among Nearly One-Third of Homebuyers

The Rise of Multigenerational Living in Homebuying Trends

In a recent study conducted by Veterans United Home Loans, nearly 30% of prospective homebuyers expressed a desire to purchase homes that accommodate multiple generations of family members. This growing trend signifies a fundamental shift in how families view home ownership and living arrangements, particularly as the needs of families evolve. The survey of 900 potential buyers illustrates that multigenerational living is driven primarily by practical considerations, including caregiving for aging parents, financial support among family members, and shared living expenses.

Caregiving Needs and Financial Considerations

The survey revealed that 29% of respondents cited caring for aging parents as their primary motivation for seeking homes that can accommodate multiple generations. Additionally, 21% of prospective buyers recognized the financial benefits of living with extended family, while 27% noted that grandparents often contribute financially to help the family maintain a certain standard of living or location.

Chris Birk, Vice President of Mortgage Insight at Veterans United, stated, "Multigenerational homes are more than a trend; they are a meaningful solution for families looking to care for one another while maximizing their homebuying potential." This notion reflects an understanding that the homebuying process is no longer solely an individualistic endeavor but rather a family-oriented decision influenced by broader familial dynamics.

Shifting Motivations Across Generations

The National Association of Realtors (NAR) supports the findings of Veterans United, noting that 17% of recent homebuyers opted for multigenerational homes last year, with the most common reasons being cost reduction, caregiving obligations, and adult children moving back home. Interestingly, the motivations for multigenerational living vary among different age groups.

Generation X emerges as the most likely cohort to consider a multigenerational lifestyle, with 36% of this group planning to include family members in their next home purchase. In contrast, Millennials, often viewed as more financially challenged, come in second at 28%, primarily needing support to afford living independently.

For the younger Generation Z buyers, the desire for financial assistance is a key motivator, with 44% of respondents indicating they plan to live with family to alleviate economic burdens. A significant portion of younger buyers expressed that they appreciate the arrangement as a means of securing childcare, indicating a newfound reliance on family support in managing work-life balance.

Cultural Influences on Multigenerational Living

The trend of multigenerational living is further shaped by cultural factors. The NAR data suggests that 26% of Asian and Pacific Islander buyers, as well as 22% of Hispanic, Latino, and Black families, reported purchasing homes designed to house multiple generations. These cultural dynamics highlight the importance of family in specific communities and underscore the idea that sharing a home is not just a practical matter but rooted in cultural traditions and values.

Conclusion

As homebuyers navigate the complexities of the current housing market, it becomes apparent that multigenerational living is not merely a passing fad, but rather a reflection of shifting family structures and financial realities. With a significant proportion of new buyers leaning toward homes capable of accommodating multiple generations, it is evident that the discourse around homeownership is evolving. This change calls for real estate professionals, lenders, and policymakers alike to recognize and adapt to these trends to better serve the needs of modern families. For more extensive insights on this trend, check the full survey and methodology at Veterans United.