Multigenerational house living is now the new norm of living since Covid-19 reached its peak last year. Many family members combine resources to buy a home that will enable them to live together. These people couldn’t compete with other buyers individually to purchase large homes in the current expensive housing market.
Affordability and Large Space Are Amongst the Driving Factors
House prices are skyrocketing, with no intention of slowing down. As a result, homebuyers are seeking alternatives to bypass competition in the redhot market. With home prices reaching new high records, families now contribute money to afford larger-spaced homes that can accommodate them all.
A teacher in Brooklyn, Erin Wentz-Lesman, told N.Y. Times that her income was too low to afford a home. However, her husband, two children, alongside her retired parents, put together some funds to buy a 5-bedroom home.
Jessica Lautz, who works at the NAR as the Vice President of Demographics, says that the new style of living may continue for a long time, maybe until the housing market starts slowing down.
Childcare Provision Is Another Reason for the Multigenerational Living
Around 50% of homebuyers bought a multigenerational home in the second quarter of 2020, which was the biggest share since 2012. Although the main reason for multigenerational living is affordability, NAR analysts suggest another reason for the trendy style is to accommodate aging parents and grandparents in the home to provide child care.
Just like Lautz has stated, multigenerational living has come to stay. Houses with enormous spaces are quite expensive for low and middle-income earners. Therefore, the only way they can achieve their goal of living in gigantic homes is to purchase together.
The rising housing market has no intention of slowing down any time soon, except some things are put in place. For instance, we can attribute the rising costs of prices to low supply. If more houses are constructed, this could balance supply and demand, eventually bringing down the high costs of houses.
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Published by Eric Lawrence Frazier MBA.