Multigenerational families multiply, affecting home design and financing

Twenty percent of the U.S. population lives in multigenerational households, according to the Pew Research Center. That means two or more adults from different generations or a grandparent and grandchild under 25 are living together.

The numbers of multigenerational households spiked up during the 2009 Great Recession when young adults couldn’t afford their own place. But the trend isn’t decreasing, the Pew Research Center says.

The benefits of generational togetherness extend beyond whittling down expenses. A 2018 Columbia University study showed that healthy adults who live in a multigenerational setting live longer.

Now the housing and mortgage lending businesses are adapting to serve multigenerational families better. Here is a look at their unique needs:

All contribute to expenses

Families buying a home together should detail how they plan to split expenses to a mortgage lender. Some lenders have tweaked lending practices for multigenerational families.

PNC, for instance, reports that buyers of a duplex who are planning to rent the other unit usually pay a slightly higher mortgage rate, but not if the renter is part of the multigenerational family.

Sean Hundtofte, chief economist at online lender

Better.com, says that parents buying with their adult child frequently supply the down payment, perhaps drawn from equity in their former home. Later, parents may gift portions of the ownership to their adult child.

Multigenerational features wanted

In a survey of 23,000 shoppers of newly built homes by John Burns Real Estate Consulting, 41 percent say they are likely to accommodate an elderly parent or adult child.

First-floor bedrooms, sometimes equipped with a kitchenette and/ or a separate entrance, are the top offerings, says Jenni Lantz of John Burns.