NAHB survey finds 45 percent of buyers would prefer a multigeneration home.

Multigenerational living is a common practice in many countries, including here in America. Prior to World War II, many extended families, particularly those of recent immigrants, lived together under one roof. After the war, though, a shift toward independent living took hold, spurred in large part by the rise of relatively inexpensive housing in the suburbs. But the practice never went away entirely. And over the last few years, it has gained steam because of a number of factors – the pandemic and high housing costs among them. According to the Pew Research Center, “the number of Americans living with multiple generations under one roof has quadrupled” to some 59 million over the last 50 years. For the most part, multigenerational living involves adult children, plus one or both parents and/or grandparents. Sometimes it’s a young adult returning to the nest after college or after a divorce. Sometimes it’s siblings choosing to live together, maybe to care for each other’s children or to pool resources while each saves for their own places. Whatever the arrangement, some builders have taken notice. The National Association of Home Builders reports a steady increase in the share of houses built with two or more main suites. According to the latest, yet-to-be-published NAHB survey, 45 percent of all buyers would prefer to buy a multigeneration home. But there are differences among ethnicities: Just 37 percent of white respondents said they would want such a place, compared with 72 percent of Latinos, 71 percent of Asian Americans and 61 percent of African Americans. In the resale sector, 14 percent of all buyers are multigenerational, according to the latest figures from the National Association of Realtors. Whether it’s young roommates or senior citizens, “people are supporting each other,” said NAR Deputy Chief Economist Jessica Lautz. If you already own a place, you really don’t have to worry about financing if you want to bring a parent or an adult child in under your roof. But if you are buying a place together, there are financing rules such as whose income can be used to qualify.


Source: Lew Sichelman, The Housing Scene, Published by Banker & Tradesman