There is an increasing demand for multi generation homes in Fresno CA. As more people in their early 20’s opt to stay at home with their moms and dads, and more baby boomers are retiring, the real estate business has seen a greater need for properties that can accommodate several households under one roof.
Don’t be surprised! Multi gen living is a rising housing trend in the U.S. these days, and almost one out of five Americans have been living in a multi generational household since 2014.
Records show that 64 million Americans have adopted the multi generational lifestyle. Will you also consider embracing this housing trend? In this post, we’ll discuss the following topics:
- What is multi generational living?
- Why live in a multi generational house?
- Pros and Cons
- What to know before buying a multi generational home?
- How to finance a multi generational real estate property?
- Kinds of houses best suited for multi generational housing
- Property features to make multi gen lifestyle easy
- How to make multi generational living work
What is multi generational living?
When you’re asked to picture a multi generational household, you’ll probably imagine a set of parents with children and an older couple who are most likely the grandparents. If this is how you imagine multi-generational living is, you’re right.
Multi generational living is when two or three generations come together and live under the same roof or in the same property.
Multi generational households come in different kinds.
There’s two generations, three generations, and more than three generations.
The two generation household is something you’re familiar with. It happens when people from two generations live under one roof. This is a scenario you know about. For example, a couple from one generation living with children from another generation.
Typically, when you grow up, you move out and get your own place. Right? Well, in this kind of household, the child (who is now an adult) does not move out of the house but opted to stay and live with the parents. Or he or she could have moved out of the house, but came back and started sharing one roof with the parents.
The three-generation household is the one you’ve imagined. It consists of grandparents, parents, and children living under one roof (or one property but under different roofs in some cases).
More than three generations refer to a family unit that has different generations living together. This could mean having children, the parents, the grandparents, and some other relatives that are not of the same generation as the children and the parents.
There are many reasons why this happens and why many people choose this type of living situation.
Whatever the reasons are, the fact remains that multi generational property ownership is increasingly becoming popular.
It’s like the 1940’s again where three generations living was the norm for many families. In this period, about 25% of U.S. population lived with three or more generations in one home. The American household started moving towards the two generation style after the war ended.
Why live in a multi generational home
You’re probably wondering why any adult would want to live with their parents. Or why would someone want to live with a relative?
There are some reasons why some people choose multi gen house. Let us explore the reasons below:
Financial benefits. This is primarily the reason why many people are starting to prefer living in a multi gen household .
Living is costly these days! Buying or renting a home can cause a serious dent in someone’s pocket. Some college and fresh college graduates who have student loans and car loans opt to stay with their parents to be able to pay off their loans, or save money when the time comes they have to move out.
Different family structures also make owning a multi generational house practical. If you are a single parent supporting two or three children, moving back to the family home or buying a multi generational home for sale in Fresno CA with your parents is a significant advantage.
Not to mention the savings on childcare because now that there are grandparents who can look after the children when the parent is away.
There are also families who opted to live with the grandparents because one or both the grandparents need financial help.
Relationship benefits. Another good reason why many people love living with their extended family is because of relationship benefits. Having the assurance that someone will be there to look after the children when the parents are away is a significant benefit.
The opportunity for grandparents and grandchildren to interact and develop a closer bond is another reason why some people opt to build an in-law wing. Aside from the close bond and relationship, there’s also the care-giving and household management factors.
Pros and Cons of multi generational housing
There are always two sides to a coin. Different family structures have different pros and cons. In this section, we will learn the advantages and disadvantages of living in a multi generational real estate property.
Saving money. Living in a multi gen house with extended members of the family can actually save you money because you share living expenses.
If your previous monthly rent was $1000, when you rent or buy a property with your extended family members, you cut down your expenses because you are sharing the rent with someone. The same is true with utility bills. This can help you save more.
If you decide to live with your parents and they are still paying the mortgage of the house, you can pay a rental fee at an amount that is convenient to your budget.
Shared responsibilities. Leaps and bounds in medical technology have enhanced lifespans. Now that people are living longer, the challenge becomes “how do we take care of them?” The answer is in multi generational homes.
How can a multi generational household help in sharing responsibilities?
When different-age people live together, distributing age-appropriate responsibilities is the way to go. Younger people in the household can take care of more challenging physical work like mowing the lawn, cleaning, repairs jobs, paint jobs, lifting boxes, etc. Older generations can then take the less physically demanding tasks like cooking, washing the dishes, looking after the children, and other less strenuous tasks.
Improved family relationship. When a household includes small kids, parents, and grandparents, you can just imagine how many different generations there are in that house.
Living under one roof gives family members, especially grandparents, more time to interact with their grandchildren, giving them plenty of time for emotional bonding and in the process developing more closeness among themselves.
With a multi generational household, there’s no need for a special occasion to gather and have fun. It can be done weekly.
Improved security. Grandparents benefit from the social relationship with their grandchildren. They feel more secure. This social interaction also limits the depression and loneliness frequently observed among the older generation.
A multi generational household offers significant advantages to children whose parents are absentee or suffering from divorce. Grandparents are an instant source of love, support, attention, and affection. Whether that’s providing assistance in doing homework or just being there to listen or help when the children need someone to talk with is already a big help.
The constant attention of a loved one when one or both parents are busy or away at work can be a source of assurance for the children.
Take a look at this video from FastNews365.
While there are many advantages to living in a next gen Fresno CA home with your extended family, there are also disadvantages. Check out the following cons:
Personality conflicts. One of the major disadvantages of living with other people are conflicts in habits and behavior. If you’re a parent, you may not be used to being given unsolicited advice on how to raise your kids.
Or if you’re a grandparent, you may have a conflict with your children regarding parenting style or financial matters. If you live with your in-laws, you may not agree with some of their ideas, which causes friction in the relationship and affect the family dynamic.
Limited space and privacy. Another disadvantage of the multi gen lifestyle is limited space and privacy. Traditional houses are designed and built for only a few people. Squeezing in more family members can limit the space for everyone and cause discomfort unless you get a home designed to accommodate everyone’s needs.
What to know before buying a Fresno CA multi generational home?
Living in the same house with your parents, in-laws, or grandparents can be great for everyone, but it also has its own challenges. Before you agree to creating a multi generational household, here are some considerations you need to make.
1. Space and privacy for everyone. The most important factors when considering multi-gen property ownership are privacy and space. Each member of the family should have a space to call his or her own.
This could mean installing new walls to divide rooms, or modifying your house structure to ensure that other family members feel they have their own place.
For many people of the older generation, it means having their own front door and their own den and mini-kitchen where they can enjoy their privacy.
In Fresno CA, builders like Lennar are already constructing houses that cater to this trend. In fact, they have already introduced next gen homes at the Ellingsworth New Home Community.
2. Financing. This is a very important topic you need to have a conversation with your family members. Talking about financial matters may be awkward, but it must be done.
Some issues you need to discuss include:
- Who will buy the property?
- How will the mortgage be paid?
- How much will the monthly contribution be?
Some families who have tried to do the multi gen household setup recommend having a “house” prenup.
This is a document that clearly states how the family would pay for the property, how long they would do, how much each person’s contribution would be, etc. The house prenup basically covers the expenses for the house.
It also includes an “exit strategy” in case someone wants to move out.
The house prenup is signed by all adult members of the family, signifying their agreement to the plan.
3. The right buyer’s agent. Not all agents know how to sell the right multi generational real estate property. You need the help of the right buyer’s agent to ensure that you’ll have a smooth and stress-free real estate journey.
Having a buyer’s agent is one of the best things you can do when you buy a Fresco CA multi gen housing.
Check out some of the benefits of using a buyer’s agent.
- Better representation. Listing agents have the interests of the sellers in mind. A buyer’s agent has your needs in mind. When you have a buyer’s agent, you can be sure your needs are met and prioritized.
- More opportunities. Having a buyer’s agent means you have a professional dedicating time and effort to find a place according to your parameters. This way, you don’t waste time looking at houses that don’t fit you. Having a buyer’s agent also means you have a wider network and more properties to look at.
- Professional recommendations. If this is your first time to get a home mortgage, you’ll need professional assistance to make sure you are getting a good deal and how to work with a number of people you’ll be meeting, from loan officers to appraisers.
Discover how I can help you here: http://equityassetsrealestate.com/about-jason-nenadov/
4. Location. When it comes to purchasing a home, location is very important.
You need to consider the needs of each family member.
For families with an elderly person, you should consider getting a home close to the hospital. If you have school-age children, you should be within proximity to good school districts. Of course, you also have to find a place that’s within a short driving distance of family members who work.
Being near shopping and dining options should also be part of the consideration.
5. Resale value. Whenever you buy a property, you have to keep the resale value in mind. Fortunately, there is an increasing need for multi gen housing so the demand is likely to remain consistent.
6. Get everyone involved in the discussion. Buying a multi generational property is quite a challenge because not only do you have to consider the needs of every family member who’ll live in the house, even those who won’t live in the house should also get their two cents in because the property becomes a potential inheritance.
How to finance a multi generational home
Buying a property can be a challenging and tedious process. Purchasing a multi generation real estate property makes it even more challenging. Not only do you have to consider more people’s needs and must-haves, you also have to deal with more employment issues, credit scores, financial stability, and more.
Before buying a multi gen house, you need to have a clear discussion with everyone involved. You need to get things in writing, with everyone’s signature. This is a precautionary measure for those times when some people have forgotten what they’ve agreed to and start making things difficult.
Individual mortgage or joint loan?
A custom-built multi generation home, or even one that is big enough for you and has an attached suite for your in-laws, can be expensive. Fortunately for you, you have the option of getting an individual loan, or if the house is too expensive, a joint mortgage.
An individual loan is when you get a mortgage and you pay for it by yourself. A joint mortgage is when you and your parents or your grandparents apply for a mortgage together.
In a joint mortgage, the lender will evaluate all the applicants’ incomes and assets and consider it as a cumulative number.
There are pros and cons to getting a joint loan.
For one, if your income is not high enough and your parents or extended family members have better-paying jobs, the salary amount on your loan application will look good. If your credit history is a little rocky, partnering with someone who has excellent credit history can really help.
A joint loan also allows you to save some money on the property tax, and you and your parents will also get an income tax rebate.
However, while it may look great because you can qualify for a larger loan, there are also several downsides.
One downside is if you have a good credit history and your parents have a bad credit history, it will harm the chance of getting a mortgage. In this case, you are better off getting an individual mortgage.
Another disadvantage is everyone who took a mortgage is responsible for paying it on time or risk getting penalized. This can be difficult especially in situations where one might have lost his or her job, so others have to carry an additional burden.
Check out how this family resolve their family’s multi generational home mortgage concerns
Kinds of homes best suited to multi generational household
The typical American home structure would find a multi gen household a tight fit primarily because it was not designed to cater to such a family structure. With grandparents, cousins, aunts and uncles, and other relatives coming to live in the house, you need a special kind of house to accommodate everyone comfortably.
Here are some kinds of multi gen housing in Fresno CA.
- Homes with in-law suites or guest house. In-law suites or apartment are living spaces built over a garage or like a basement. It can also be an attached living quarter, or it can be completely detached from the house.
A guest house can be an attached or detached living space that comes with its own kitchen, bathroom, and sometimes a den, or small living room.
Both in-law suites and guest houses have their separate entrances.
- Two homes on one lot. Another ideal place for a multi generational house is a property with two homes. It could be two single family homes on one lot.
- Duplex. Two living quarters standing side by side is another good option if you have to live with your extended family. You have your own living area and they have theirs. Often times these setups share a common wall but don’t have a door to access both units.
- Custom-built homes. A customized layout is the best style for your family. A builder of next gen homes in Fresno is De Young Properties.
Property features to make the multi generational lifestyle easy
If you’ve decided to give multi gen a go, knowing the right property features can make it easier to live with parents or other family members.
Here are several multi-gen house features you MUST consider when looking for a new abode.
- Easy access. Whether you are in the process of building a home or buying a home, one of the most important features you need to have is easy access for all, particularly for family members who might have a walking aid or are in a wheelchair. You want a home where everyone, from the youngest to the oldest family members, can freely come in and feel comfortable.
- Flexible living spaces. Homes with flexible living spaces are the ideal ones for multi generational families. Keep the living spaces (ex. bedrooms) as simple as possible so when a family member leaves (ex. a child goes to college), his or her bedroom can be easily be converted into a guest room or an alternative sitting room.
- Ensure privacy. Although a next gen home promotes shared living spaces, it does not mean you don’t get privacy. Having your private space can be achieved by using various architectural features like movable wall dividers and cabinets. Adding a second entrance also gives the feeling of privacy because they get to have their own door.
- Add suites. If you have a large house and would like to customize it for a multi gen household, adding a suite is the best way to do it. Creating an “in-law suite” that functions as a mini-apartment will make the user feel more comfortable.
- Soundproofing. If you can find a house that already has a built-in in-law wing that’s also soundproofed, that’s great. If not, be prepared to invest in soundproofing.
Why should you even bother with the sounds? Because if you have small children, they will likely be running around and causing too much noise, which can be disturbing for the elderly grandparents. On the other hand, it could be that the elderly grandparents like to watch TV a little too loud and the noise carries over to your living room, or study room, or kitchen.
How to know if multi generational living is right for you
Multi generational living can be fun and exciting. It can also be challenging and stressful. Expect plenty of adjustments, bickering, and challenges. But also expect cooperation, understanding, and empathy.
Before your family dives deep into this lifestyle, here are some things you need to talk about.
- Will this be for short-term or long-term? Cohabiting with extended family members presents its own challenges, so you need to know how long everyone wants to do it, and what are some exit strategies.
- How do you split the bills? Mortgage payments aside, you also have to consider utility and living expenses.
- What’s the best way to ensure privacy? Living together under one roof does not mean seeing each other all the time. You have to make sure that everyone has their own private space they can escape too when the demands and challenges of being around the family become too much.
A multi generational household has its own perks and challenges. If you love the idea of living with your parents, parents-in-law, or grandparents, then this trend may be for you.
Discover multi gen housing in Fresno CA!
When you want the best real estate experience, call me, Jason Nenadov, at 559-246-8991. At Equity Assets Real Estate, you and your needs are our top priority.