Finding a Home for Your Multigenerational Family

In 2024, multigenerational homebuying hit an all-time high of 17% of all homebuyers, according to the National Association of Realtors® 2024 Profile of Home Buyers and Sellers, with the top reasons being for cost savings, to take care of aging parents, because of children or relatives over 18 moving back home and children over 18 who never left home.  

Multigenerational living can provide many benefits, allowing families to stay close together while saving money on housing-related costs and elderly or childcare expenses. Those living in multigenerational homes are often able to enjoy more financial security while having the positive experience of living with loved ones.  

However, finding a multigenerational home to fit your family can be challenging. Here are three general steps to finding one, from Bob Hay, 2008 PAR president.  

1. Discuss Your Plans 

“Before starting your house hunt, take the time to discuss your house plans as a family so that you’re all on the same page,” says Hay. “Have you hashed out what you’re looking for in a new home? Can you agree on potential compromises? Are there any unaddressed concerns about the move?”  

“You may also find it helpful to articulate your ‘why’ for buying a multigenerational home and how each of you might benefit,” he continues. “For some families, multigenerational living is all about caring for relatives and sharing responsibilities. But for others, the goal is to pool resources so that you can purchase a more desirable property or cut down on expenses, like childcare or senior living.” 

Hay encourages prospective multigenerational buyers to weigh both short-term wants and needs and long-term issues that could arise in the future, such as accessibility or money concerns. “We can help by interviewing family members individually and advising you on what you can realistically find in today’s housing market,” he adds of Realtors®.  

2. Draft a Joint Budget 

“Once you’ve settled on what you want and need from a new home, your next step should be to jointly draft a budget so that you’ll know what you can afford,” Hay says. “To ensure that no one in your family gets accidentally overextended, think holistically when planning your new housing budget and determine what you would need to buy the home – and maintain it.” 

In addition to the budget, he encourages families to think about what size home and layout they may need. Ideal multigenerational homes typically have ample space and privacy. Different families will have different needs, and some may decide that constructing additions or making renovations will help meet their wants and needs.  

“When visiting a property, we’ll help you weigh potential costs and estimate whether it’s a good investment,” Hay assures. “We can also connect you with a trusted contractor who specializes in renovations.” 

3. Apply for a Mortgage 

“Buying a home with family can be complicated – especially if you plan to jointly apply for a mortgage. However, depending on your financial resources, you may be surprised to find that it’s sometimes easier to qualify for certain mortgages as a group than if you tried to do it alone,” Hay notes.  

“Talk it over with a mortgage lender or broker and ask for advice on what’s best for your situation. We’d be happy to connect you with a professional who understands the nuances of co-buying.” 

It’s also important for all family members to check their credit, which is an important factor in determining mortgage qualifications. Pulling your credit reports will let you know where you stand and allow you to correct any issues ahead of time.  

Hay suggests also considering the following questions: 

• Who will be on the mortgage? 
• What about the title? 
• Would including everyone on the mortgage be beneficial for your mortgage rate? 
• For those who don’t qualify for the mortgage or have a lower credit score, can you make other arrangements so that they can still financially contribute? 

When it comes to multigenerational living, Realtors® can help families consider their needs, find a home that fits them, navigate the buying process and connect with other expert financial and legal resources.