Hot Trends: Multigenerational Homes
A lot of things about the real estate market in 2020. For one, historically low mortgage rates fueled a housing boom that few saw coming. But the 2020 housing market was not only different in terms of the number of homes sold. It was also different in terms of the types of homes sold. Home buyers were opting for larger homes with bigger lots in suburbs and rural areas. A lot of this was a response to the changing needs placed on homeowners by the pandemic. People wanted more room for themselves to work from home, school from home, and exercise from home. Also, more and more home buyers were living with more people. One of the biggest trends of 2020 that will probably continue through this year is the rise in the number of multigenerational homes.
What are Multigenerational Homes?
Multi-generational homes are exactly what they sound like. They are more than one adult generation living under the same roof. Basically, any household that has adult siblings, adult children over the age of 18, parents, and/or grandparents in the home. Families come in all shapes and sizes and so do households.
This year has seen an increase in the number of home buyers specifically buying a house that can accommodate a multigenerational living situation. After April, multigenerational home purchases accounted for 15% of all home sales according to the National Realtors Association. This is a marked increase from last year’s numbers or the numbers before March. So what changed?
Why Multigenerational Home Sales Increased in 2020
Like so much of 2020, the number one driver behind the increased purchase of multigenerational homes was the pandemic. The pandemic changed a lot about our normal routines, including where we worked and our kids went to school. It also caused a lot of people to rethink their extended family’s living arrangements. Once the pandemic started adult children became more likely to live with their parents and grandparents. This trend happened in both directions; adult children moved in with their parents and parents moved in with their adult children. There are several reasons behind these trends.
One of the big reasons why families started to come together under the same roof was to prevent extended separation. In order to control the spread of the virus, cities, states and counties initiated varying levels of lockdowns. Interaction with people outside of your immediate household and travel beyond your neighborhood has been strongly discouraged. For many, the idea of not seeing parents or children for an extended period of time is unimaginable. The easiest solution to not being able to visit relatives during the pandemic is to simply move in with each other. This is especially true for relatives that live far away from each other.
One of the unique aspects of COVID is the way it disproportionately impacts older individuals. That means that older individuals have to take even more precautions to avoid catching the virus. Less trips to the market. Less visits with friends. No social outlets. For these reasons it made sense for lots of families to ditch separate living in favor of a multigenerational home.
Health concerns for older family members were a big factor in the push to multigenerational home buying aside from mere social isolation. People who live in nursing homes are one of the highest at risk groups during the pandemic. Not only are older people more vulnerable, but the communal nature of adult living facilities increases the risk of transmission. Instead of worrying about the health of parents or grandparents, many adult children chose multigenerational homes as a solution.
Another big factor behind the increase in multigenerational home sales is the economic impact of the pandemic. Millions of Americans lost their jobs because of COVID. These job losses particularly hurt younger generations, which made it difficult for them to continue paying rent. This has caused lots of adult children, especially millennials, to move in with their parents. Multigenerational homes have been a way for families to pool resources and take care of the bills in spite of economic uncertainty.
Final Thoughts
There are a lot of different reasons why a lot more Americans decided to buy larger houses and move in with their extended family. The pandemic has caused strain for a lot of us. And when times are toughest, it is always wonderful to have your family to lean on. It also goes to show that buying a home is about much more than buying an asset. It is about finding a place that is perfect for you and can meet the needs of those you love the most.
If you are like one of the millions of Americans who are looking for a larger home to make room for your family, contact us! We can walk you through our complementary mortgage qualification process and help you take advantage of today’s low mortgage rates. Our team of independent mortgage brokers are happy work with you and make your dream of owning a multigenerational home a reality.
