For many people, it’s an empty nest no longer
We’ve all heard the horror stories of parents stuck with their adult kids at home. They just don’t seem to want to leave! However, this new trend toward multigenerational homes is one that is driving the real estate market.
Last month the National Association of Realtors, or NAR, released its 2017 Profile of Home Buyers and Sellers. One of the most interesting takeaways was the rise of the multigenerational home. This is probably nothing new to the thousands of parents complaining about their kids not wanting to move out, but that is not the largest chunk of the population cohabitating between generations!
So, the NAR found that 13 percent of all of the homes bought in 2017 were bought for a multigenerational home. This is a fairly large chunk of the market, and it’s one that hasn’t typically existed. The last time that we have seen this segment so large was back in the 1950s.
Markets are always shifting, and shifts aren’t something to fear, but to be embraced. Builders have been struggling through the recession, but many of these builders have found great success in these new multi-generationally designed homes. These new homes have larger footprints, master suites on the bottom floor for elderly families, and lots of space.
Now, I played my hand a little bit there referencing the elderly family members, but here is the shocker for many parents. Ready? More people are buying multigenerational homes for taking care of aging parents than their children.
The NAR report found that of the people buying a multigenerational home 22 percent of them were specifically buying to take care of their parents. That marks a 3 percent increase over last year. This is largely due to those or the Greatest and Silent Generations rapidly approaching 100. With lifespans increasing, we are seeing more and more parents moving back in with their children.
Now, I don’t want to give a free pass to those millennials that you always hear about. The report was not silent on them either. They also played a major role in the increase of this sector. According to the
researchers at the NAR, about 16 percent of those buying multigenerational homes were buying it to accommodate their adult children moving back in. This marks a 2 percent increase over the 14 percent of the last year. So, the trend in the market is to see millennials moving back in. However, they are not even one of the main two causes.
The second most common reason for this move is price. Over the past few years, the price of real estate has skyrocketed. Entry level homes are getting harder to find, and that makes the multigenerational home an attractive option. Price per member is decreased, while the quality of the home and amenities is greatly increased.
We’ve all heard the horror stories about the kids who don’t want to leave home, but the real estate industry is seeing a silver lining. These multigenerational buyers are really helping out after a rough season. One thing is sure, it’ll be interesting to see if this segment of the market keeps growing.