Trends in Multigenerational Living

BY PAMELA BABCOCK

Homes are all in the family these days.

Retirees from Florida are moving in to provide childcare to their grandkids. A recent college graduate who can’t find a job boomerangs back in with his parents. An adult son, getting divorced and low on funds, moves in with his mother—a recent retiree on the cusp of enjoying her golden years.

After declining in previous decades, multigenerational living has grown in the U.S. With home prices rising, more extended family members are combining households to help each other and save on costs.

The number of multigenerational households grew during the pandemic. This past year, the National Association of Realtors® Profile of Home Buyers and Sellers revealed multigenerational buying is back near an all-time high at 14%, up from 11% in the previous year. In 2020, the report found a low before the COVID-19 pandemic of 11%, followed by a jump to 15% of all buyers.

Some multigenerational households may be temporary because of the pandemic, according to a study by LendingTree, but many Realtors® have observed its effects in the housing market.

Broker sales associate and Realtor® at Prominent Properties Sotheby’s International Realty in Montclair Kate McDonough, said in the past several years, she’s seen “a decided increase in the desirability of multifamily homes.”

“They used to be sought after primarily by investors,” said McDonough, adding that now, buyers are scooping them up so different generations in their family can live under the same roof in separate units. “This doubles the buyer pool for such homes,” said McDonough.

Similarly, single-family homes with a primary bedroom on the first floor are growing in popularity because they allow children and grandchildren “to join parents in one house,” said McDonough.

Realtor® Jeanne Lisa Wolschina, with The Lisa Wolschina Team at Keller Williams in Cherry Hill, said in her 20 years in the business, buyers are “definitely more aware” they might need to take in family members.

“Similar to other cultures where it is common to live with extended family members to share resources, some American households have started to do the same,” said Wolschina.

Demand for multigenerational housing in New Jersey has been historically high and in today’s competitive market, multigenerational, or multigen as it’s often called, homes are not easy to find, said vice president of Coldwell Banker Realty New Homes David Schoner.

“With higher interest rates and a lack of inventory, we are seeing a greater gulf in affordability, especially for new home buyers,” said Schoner. Pent-up demand coupled with the lack of supply, the high cost of building supplies, and increased borrowing rates make things even tougher.

In New Jersey, multigenerational housing comes in many forms. Many towns have a stock of larger homes that were once single-family residences but have been divided into separate residences.

Wolschina said bonus spaces, such as a finished basement or garage loft with heating and cooling are popular, and first-floor bedrooms and separate office spaces are also a big plus.

“Almost everyone needs a space to work from home, and a lot of college graduates are moving back home to save money while they start their first jobs,” said Wolschina.

A recent client was excited to buy a South Jersey home with a small apartment above the garage, foreseeing that one day, it might be used by his college-age daughter or as a rental property to bring in extra money.

Coldwell Banker Realty New Homes works to address the demand for more multi-generational housing by recommending its builder clients develop apartments, townhomes, and condominiums with flexible living spaces to accommodate various family members, said Schoner.

Its plans often include units that offer two primary bedrooms—one each on the first and second floors—in addition to two bedrooms upstairs and two-and-a-half or three baths.

Schoner advises buyers looking for single-family homes, townhomes or condominiums able to accommodate extended family to “get in early,” since there are generally fewer multigenerational adaptable homes in each new community or building. “They are in strong demand and typically the first to sell,” said Schoner.

Realtor® Heather Bailey, of Coldwell Banker Realty in Morristown, is the listing agent for several condos and townhomes in the area and said there is demand for firstfloor primary suites for live-in or visiting parents who may have seasonal homes in Florida, the Jersey Shore or elsewhere.

Demand for one-floor living is “very high,” said Bailey. “We often hear that the parent may not be able to navigate stairs.”

The Morris County area works well with the multigenerational family living trend given its proximity to top-rated medical facilities and cultural events as well as easy access to central highways, trains, and Newark airport, said Bailey.

Broker associate with Coldwell Banker Realty in Alpine/ Closter Anne Van Dyke, said a Bergen County property has become “a de facto multigen community.”

In November last year, Van Dyke’s client downsized from a large home in Cresskill and bought a second-floor condominium, while the client’s adult daughter bought the unit above her. The client’s son also is considering buying in the same development, said Van Dyke.

Peace of mind was a big draw. Van Dyke said the arrangement allows “total living independence,” but the opportunity to have a loved one living just upstairs.

The client is “extremely happy to be there and has made quite a few friends,” said Van Dyke. She winters in Florida and her children visit her there.

Not everyone wants to live with their parents, adult children or siblings. Those who do should keep several things in mind:

Some municipalities and homeowner associations have zoning regulations or rules that limit the number of people who can live in one dwelling or the number of vehicles that can be parked on a city street or property.

In more rural areas, the size of the septic system may be an issue for someone planning to expand. Bailey said one of her buyers who plans to renovate their basement to expand the living space found they must secure town and county health department approvals.