Don’t be surprised! Multi generational living is a rising housing trend in the  U.S. these days, and almost one out of five Americans have been living in a multigenerational household since 2014.

Records show that 64 million Americans have adopted the multi generational lifestyle. Will you also consider embracing this housing trend?

-What is multi generational living?
-Why live in a multi generational home?
-Pros and Cons
-What to know before buying a multi generational home?
-How to finance a multi generational home?
-Kinds of homes best suited for multi generational living
-Property features to make multi generational living easy
-How to make multi generational living work

What is multi generational living?

If you're asked to picture 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 or in the same property."

There are many reasons why this happens and why many people choose this type of living situation.

There are different kinds of multigenerational household. 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 (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’s not of the same generation as the children and the parents.

Whatever the reasons are, the fact remains that multi generational living 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 generational or next generation homes. Let us explore the reasons below 

Financial benefits. This is primarily the reason why many people are starting to prefer living in multi gen homes.

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 in their parents home 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 multigenerational home practical. If you are a single parent supporting two or three children, moving back to the family home or buying a multi generational home 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. The assurance that someone will be there to look after the children when the parents are away is a great 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 living

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 next generation home. 

The Pros

Saving money. Living in a multi gen home 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 home 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 enhanced lifespan. Now that people are living longer, the challenge becomes "how do we take care of the home?" The answer is in next generation homes. 

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 generation 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.  

The cons

While there are many advantages to living in a 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. 

If you're a grandparent, you may have 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 multi generational living is the limited space and privacy. Traditional homes 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.

How to finance a multi generational home

Buying a home can be a challenging and tedious process. Buying a multi generation home 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 generational home, 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.”

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 application paper 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.