MULTIGENERATIONAL LIVING is an old tradition that is on the rise in the U.S. Is it a pandemic blip or is it a shift in affordability? This arrangement brings on its own set of financial and emotional pros and cons. Millennials have led a movement toward multi-gen households. While some adults move home to save money others are drawn to the benefits that reach beyond financial.
Here are a few pros and cons of multigenerational arrangements.
- Easier financing – Having more adults with assets and income increases the chances of having a greater purchase power.
- Saving money– Sharing the expenses gives everyone and opportunity to build savings or pay debt.
- Helping with children, aging, or ill parents-The burden of care can be spread across the available adults which eases a burden on all concerned.
- Sharing in home equity– When the time comes to sell each person makes the mortgage payments and shares in the equity at the sale of the home.
- Increased Longevity– Having more adults to provide emotional support encourages a feeling of stability and stronger family bonds which increases longevity.
- Less Privacy- Sharing a home means less personal space. Understanding each family members needs and respecting closed doors may be one of the simple rules that will help.
- More Noise– Making locations and times for children or room for seniors to relax is imperative for each group to feel at home.
- Increased Housework-More people means more laundry, more dishes, and more stuff. General organization and a good chore list with rotating responsibilities needs to be in place,
- Tensions– Relationships can fester when you are living in such close quarters. Potential issues should be considered prior to becoming a multi-gen home. Rules or procedures for handling problems should be discussed including financial conflicts, parenting differences etc.
FINAL THOUGHTS …The economics of modern real estate markets make multi-gen households an extremely attractive consideration for many families. Be sure to be prepared for all the good and the difficult that may be a part of the transaction. Remember to include your realtor in your plan and your space and location needs.