Home Harmony: Multigenerational Living Shaping The Future, Bridging Affordability Gaps

Multigenerational housing is emerging as a model to help address housing supply shortages and homeownership gaps.

Multigenerational housing is emerging as a model to help address housing supply shortages and homeownership gaps that persist among many ethnic groups as homeownership affordability remains a challenge for millennial and Gen Z buyers.

Intergenerational or multigenerational housing is when multiple generations live together, a model many cultural communities have embraced. The trend emerged during the pandemic and the following years when many families chose to move in together. Elderly parents moved in with their children, and children chose not to leave the nest.

The number of people living in multigenerational family households quadrupled from 1971-2021, reaching 59.7 million in March 2021, according to a Pew Research Center analysis of census data.

Don't Miss:

• Investing in real estate just got a whole lot simpler. This Jeff Bezos-backed startup will allow you to become a landlord in just 10 minutes, and you only need $100.
• Elon Musk has reportedly bought 6,000 acres of land just outside of Austin. Here’s how to invest in the city’s growth before he floods it with new tech workers.

The growth of the Asian and Hispanic population who, along with Black Americans are more likely than white Americans to live with extended family, is fueling the increase in multigenerational living, according the Pew report.

Consumer demand for multigenerational living means the concept is here to stay, Donna Butts, executive director of Generations United, said during a panel discussion hosted by the National Association of Realtors (NAR).

"Whether it's your own family or someone in the neighborhood, it's the way of the future," Butts said.

Although America was settled by multigenerational families, Butts said the trend is not a step back in time.

"It's not a matter of going back," she said. "It's a matter of going forward to something that makes sense, and it's good for us."

Homeownership rates could be positively impacted by buying a home with your family, said Butts, noting that pooling resources often allows families to buy a bigger house and obtain financing they may not qualify for alone.

With multigenerational living on the rise, the nation's housing stock must evolve with it. Accessory dwelling units, senior living spaces and adaptable single-family homes must be available for a multigenerational community to work," Rodney Harrell, vice president of family home and community at AARP told Realtor Magazine. The missing piece now is accommodating elderly people.

"By 2034, for the first time in U.S. history, we'll have more people over 65 than under 18," Harrell said. "What that means is that every community across the country will have people of all ages, and we haven't had to wrestle with that before."

Not only do housing types need to change to accommodate the elderly, but communities must also consider how various age groups get around, said Michael Spotts a research fellow at the Urban Land Institute's Terwilliger Center for Housing.

"Supporting multigenerational infrastructure means creating communities where ages 8 through 80 can thrive," Spotts said.

Read Next:

• Most investors are priced out of buying real estate in the highest-growth markets, but this genius strategy will allow almost anyone to get a piece of the action.
• Collecting passive income from real estate just got a whole lot simpler. A new real estate fund backed by Jeff Bezos gives you instant access to a diversified portfolio of rental properties, and you only need $100 to get started.
• Passive income investments are one of the most trusted methods for riding out a recession, so it's no surprise that people are turning to high-yield real estate notes that pay a fixed 7.5% to 9%.