Real Estate Matters
By Elisa Jo Eagan
At first glance, multi-generational living arrangements may seem unusual, but they were once the rule, not the exception.
From about the mid-1800s, most elderly parents and grandparents in America lived with their children. By the 20th century, this trend steadily declined, hitting a low of about 12 percent of the population in 1980, according to the U.S. Census.
What’s old is new again, however. Multigenerational living is now a booming home trend. As of 2016, 64 million Americans (20 percent of the country) lived in multigenerational homes, the highest number in U.S. history. This shift has made in-law suites a desirable home renovation for families and future buyers alike.
What Is Multigenerational Living?
The U.S. Census defines multigenerational living as three or more generations living in one residence, often grandparents, their children and their grandchildren.
Why Do People Choose This Arrangement?
The reasons are complex. Sometimes, elderly parents move in for care and companionship. Other times, it’s a financial decision – cohabitating can be more cost-effective than a nursing home. Additionally, many 20- and 30-somethings live with their parents to save money or focus on their careers.
The Benefits
The advantages are significant. Grandparents enjoy daily interactions with their grandchildren, fostering stronger bonds and reducing loneliness. Parents gain a live-in babysitter while families can share finances and household responsibilities. The arrangement also brings extended family members closer together.
Challenges and Adjustments
Multigenerational living often requires adjustments, both in relationships and home design. Creating an in-law suite, or renovating a home ensures the new residents have adequate space, comfort and privacy without disrupting the household.
Key Features of an In-Law Suite
An in-law suite typically includes a living area, bedroom, private bathroom, kitchen and laundry room. A separate entrance is ideal, as is outdoor space such as a porch or deck. These features create a sense of independence and ownership for the occupant.
Overcoming Common Obstacles
- Compliance: Ensure your project meets ADA (Americans with Disabilities Act) standards and obtain the necessary zoning and variance permissions from your local government.
- Seamlessness: Adding a suite to an older home (40–100 years old) can be challenging, as it’s important to make the new addition blend seamlessly with the existing structure.
- Family Dynamics: When opinions differ, such as between the homeowner and a parent funding the suite, establish open communication and clear ground rules from the start.
Return on Investment
Building an in-law suite can cost $125,000 or more for a 500- 1,000-square-foot addition, depending on location, size and materials. It may also increase your tax bill. Renovating an existing space, like a basement or garage, can reduce costs.
The investment often pays off. If you decide to sell, the added square footage increases your home’s appeal to buyers, whether they use the space as part of the home, an in-law suite, or a rental property.
The Bottom Line
Multigenerational living isn’t for everyone and requires an adjustment period, but its benefits are hard to ignore: stronger family bonds, potential savings and a solid return on investment. Most importantly, it allows you to care for loved ones when they need you most.
For real estate advice, contact Elisa Jo Eagan, the “Real Estate Godmother,” at 609-703-0432 or visit www.TheRealEstateGodmother.com.
For More Real Estate Questions, Information and Advice Contact Elisa Jo Eagan “The Real Estate Godmother” (609)703-0432 and Remember…”There’s No Place Like Owning Your Own Home!”
