Recently, we had our Greater Philadelphia Association of Realtors (GPAR) annual member breakfast meeting. In addition to the scones and croissants and coffee conversation, we heard lots of stats about “how the real estate market” is doing.
One fun fact is that the trend in multigenerational home purchases is rising.
Multigenerational households are defined as including two or more adult generations (with adults mainly ages 25 or older) or a “skipped generation,” which consists of grandparents and their grandchildren younger than 25. It was the norm decades ago and is now making a comeback as a strong part of the real estate market.
In their just completed annual survey of homebuyers and sellers, the NAR reports that 17% of home buyers purchased a multigenerational home.
The PEW Research Center reports that approximately 20% of the US population is now living multigenerational family situations. Research done by AARP also predicts this trend as continuing.
The NAR sited the following reasons for multigenerational purchases:
· Spend more time with aging relatives
· Health/Caregiving of Aging Parents
· Children/relatives over 18 never left home
· Children/relatives over 18 moved back
· Wanted a larger home that multiple income could afford together
· Cost Savings
Philadelphia has a strong tradition of multi-generational family living and Philadelphia itself has a large inventory of multi-family homes from which to choose.
I have seen this growing trend myself in my own real estate business. Families add value to their rowhomes by finishing the basements like little apartments, with living areas, bedrooms, kitchenettes and small baths. Or in the larger twins and detached homes, separate entrances are used to create privacy while adding benefits of being together.
If this idea is of interest to you, please feel free to contact me for more info on multi-family homes and investing.
