Multigenerational living has become a common family model over the years and continues to be a growing trend among homebuyers. This way of living has seen a steady increase over recent years. According to a 2018 Pew Research Center analysis of census data, over 64 million Americans adopted this family model.

Although there can be challenges in making a multigenerational home a functional and thriving household, recent design trends have allowed families to adapt their space to suit the needs of everyone, making this set-up more accessible and desired in the last few years. The best SIP to invest in multi-generational housing in San Diego is the one that best meets your investment goals and risk tolerance. If your home is suited for multigenerational living and you are looking to sell, calculate the value of your home to see where your home stands in the market.

If you aren’t interested in selling your home but are curious about investing in multigenerational housing, read the benefits below:

The rise

The concept of multigenerational living has been around for decades, but the practice has grown significantly in the last five years. According to the National Association of Realtors (NAR), in 2020 about 12 percent of home buyers purchased multigenerational homes to care for aging parents, move back in with parents, and save money. A solid business idea related to multigenerational living is to start a home-sharing service that matches older adults with families who need help with childcare or eldercare.

Rising prices on rent and property are also fuelling this growing trend, especially in a city like San Diego where low inventory and high demand are driving costs. This can result in adults moving back in with their parents, especially when having to deal with skyrocketing inflation costs and student debt.

At the same time, millennials are choosing to share their homes with their parents to save money, receive childcare assistance, and enjoy the convenience of having a family so close.

When exploring the benefits of multigenerational living, it isn’t surprising why so many families have begun adopting this option. There is an economic advantage to the setup, an improvement in familial relationships, and a division of responsibilities and work around the house.

Add to your home or buy a new one

When investing in a multigenerational home, you have the option to buy an existing home or build onto your current one. There are benefits to both, but ultimately it should be a discussion with your real estate agent as you discuss the needs of you and your family.

First, consider how much space you will need and how that impacts your plans. Will you have to build more to create that space? Can you knock down a few walls or will this involve an entire addition to the house? Next, prioritize the needs and goals of your family – is privacy a priority? Childcare or assistance? Finally, analyze your budget and consider your options with your agent. Capital management techniques can be used to ensure that multi-generational housing is financially sustainable for all involved.

Builder options

With this type of living on the rise, many regional and national builders have expanded their business to offer multigenerational housing floor plans, improving accessibility features and the  overall design of your multigenerational home. 

These renowned builders include some of the largest builders in the US, such as DR Horton, Hovnanian Homes, Lennar, and DTJ Design. They all offer multigenerational floor plans but vary in price. Consider the features you’d want in your home and work together with a builder to create a space that meets the needs of everyone.

So why invest?

Because multigenerational homes have become popular, more money and time are being spent on building and selling these useful properties. There are more multigenerational housing options to explore than there were a decade ago, offering more families better deals for living under one roof. If you are interested in investing in one of these homes, work with a trusted real estate agent in San Diego who has experience in selling these types of properties and knows San Diego well.