For many homebuyers, especially here in Downers Grove and DuPage County, multigenerational living used to be considered an option of last resort—a route families took only when they needed to ride out a financial storm or care for ailing family members. But that mindset is on the decline. A growing number of families now say they’re choosing to embrace multigenerational living by choice.

In fact, research by the National Association of Realtors (NAR) found that the share of multigenerational home buyers rose to 14% in 2022––close to an all-time high.¹ Buyers cite many reasons for this choice, from saving on living expenses to pooling resources, caring for family, and even buying homes that were previously out of reach. “Multigenerational home buying is a way for families to care for one another, support one another, and often buy a home that may have been previously out of reach,” writes Deputy Chief Economist Jessica Lautz in a blog post about the trend.¹

Living with extended family has become especially popular in recent years as younger generations face rising home costs and seniors embrace aging in place. According to Pew Research, the number of Americans living in a home with at least two generations of adults has more than quadrupled since the 1970s.² Here in Downers Grove, many are finding that multigenerational homes fit the lifestyle shift perfectly, offering both practical and financial benefits.

Research shows that people living in multigenerational homes often enjoy better health, longer lives, and greater financial security. A study by Pew found that people who live with relatives often report it as a positive experience.² ³ However, multigenerational living can be challenging without the right space. Choosing a home that meets everyone’s needs—comfort, privacy, and accessibility—is crucial.² ⁴

Here’s a closer look at the rise of multigenerational living in Downers Grove and some tips for finding a home that suits a diverse group.

WHAT TO CONSIDER BEFORE SHOPPING FOR A MULTIGENERATIONAL HOME

Before house-hunting, take time as a family to ensure you’re all on the same page. Discuss what you’re each looking for in a home and agree on potential compromises. It can be helpful to clarify your “why” for buying a multigenerational home. For some, it’s about caring for relatives and sharing responsibilities, while others focus on pooling resources to purchase a desirable Downers Grove or DuPage County property or save on expenses like childcare or senior care. If you haven’t had these discussions yet, set a date in your calendar so that you can talk it over as a group. Be sure to call Shanon Tully at Shanon Tully Real Estate to set up a consultation appointment. She can help advise on what’s realistic in today’s Downers Grove housing market.

Jian Huang, a homeowner who bought a multigenerational home to help her aging mother, says the decision has saved her family as much as $25,000 to $40,000 annually. “It makes so much sense financially and emotionally that we would not have it any other way,” she told Apartment Therapy.⁵

Think about long-term needs as well, such as accessibility or financial planning. For instance, if some family members are nearing retirement, they may need an accessible home without steep stairs. In Downers Grove, properties with adaptable spaces or ground-floor units could offer a convenient solution.

WHAT TO LOOK FOR IN A MULTIGENERATIONAL HOME 

After finalizing your needs, draft a budget that reflects what you can collectively afford. It’s helpful to consider the home’s size and layout to ensure there’s room for privacy. For families in DuPage County, homes with plenty of rooms and ensuite bathrooms, or those with accessory dwelling units (ADUs), are popular choices. Duplexes and large homes with separate spaces, such as a basement apartment, can also be ideal.

For families who prefer aging in place, a home with a separate ground-floor unit might be the most practical choice, suggests author Sheri Koones. “It’s a way for many older people to avoid having to go into an expensive assisted living or other facility as they age,” said Koones in an interview with Realtor Magazine.⁶

Additionally, multigenerational homes with separate ADUs offer a unique opportunity for house hacking, a concept we discussed in-depth in a recent post. House hacking can allow families to offset housing costs by renting out a portion of the home, whether it’s an ADU, basement apartment, or a spare room. Explore more on how house hacking could benefit multigenerational households here.

In Downers Grove and DuPage County, you may also find homes that allow for expansions or conversions into multiple units. We can connect you with a trusted contractor to help evaluate potential costs and whether the investment is right for you.

HOW TO BUY A MULTIGENERATIONAL HOME

Buying a home with family members can be complex, especially if you’re applying for a joint mortgage. However, multigenerational buyers in DuPage County sometimes find it easier to qualify as a group.⁷ Talk to a mortgage lender or broker who understands co-buying. We can also recommend a financial professional to guide you through this unique process.

Credit is a key factor for securing a mortgage, so check everyone’s credit as soon as possible. Correcting issues early, such as credit report errors, will help you plan your purchase and determine what’s feasible.⁸ As a family, discuss:

• Who will be on the mortgage?
• How will ownership be reflected on the title?
• Are there tax or estate planning implications to consider?

It’s wise to consult a licensed professional to ensure your choice is financially sound. We can refer you to a legal professional or an accountant for personalized advice.⁹

BOTTOM LINE 

Multigenerational home buying has grown in popularity here in Downers Grove and DuPage County for good reasons: it allows families to combine resources, reduce expenses, and live close to loved ones. The lifestyle also promotes well-being, from reduced loneliness to greater financial security.¹⁰ If you’re considering a multigenerational setup, reach out to Shanon Tully at Shanon Tully Real Estate for a consultation. We’d love to help you explore how this choice could work for your family.

The above references an opinion and is for informational purposes only.  It is not intended to be financial, legal, or tax advice. Consult the appropriate professionals for advice regarding your individual needs.

Sources: 

1. National Association of Realtors –
   https://www.nar.realtor/blogs/economists-outlook/all-in-the-family-multi-generational-home-buying
2. Pew Research Center –
   https://www.pewresearch.org/social-trends/2022/03/24/financial-issues-top-the-list-of-reasons-u-s-adults-live-in-multigenerational-homes/
3. SSM – Population Health –
   https://www.ncbi.nlm.nih.gov/pmc/articles/PMC5769098/ 
4. Better Homes and Gardens –
   https://www.bhg.com/what-to-look-for-in-a-multigenerational-home-8409277
5. Apartment Therapy –
   https://www.apartmenttherapy.com/multigenerational-homes-37412085 
6. Realtor Magazine –
   https://www.nar.realtor/magazine/real-estate-news/home-and-design/all-under-one-roof-trends-in-multigenerational-living 
7. Bankrate –
   https://www.bankrate.com/mortgages/how-many-names-can-be-on-a-mortgage/ 
8. Experian –
   https://www.experian.com/blogs/ask-experian/what-credit-score-do-i-need-to-buy-a-house/ 
9. Kiplinger –
   https://www.kiplinger.com/retirement/estate-planning-for-multigenerational-living-arrangements
10. Institute for Family Studies –
    https://ifstudies.org/blog/multigenerational-living-is-it-a-solution-for-our-aging-population