There is a rise in multi-generational house buying; here’s why.

The housing market is currently witnessing the rise of multi-generational home buying, particularly in Alaska and Montana. This phenomenon coincides with the demographic shift known as the “Silver Tsunami,” where a large number of baby boomers are reaching an age where they outgrow their current homes. Some opt to share living spaces with their adult children or aging parents while some sell their homes.

Let’s look into some other factors why multi-generational households: 

1. Affordability. Combining resources from multiple generations allows families to access larger living spaces than they could individually afford. This “economies of scale” approach helps manage housing costs.

2. Caregiving. Some families purchase multi-generational homes to provide in-home care for aging parents or grandparents. Doing this makes family members closer and provides a sense of security for older loved ones.

This “economies of scale” approach helps manage housing costs.

3. Upsizing for young families. Younger couples with closer families may find multi-generational homes as an attractive option, especially if they have parents who could benefit from a shared living arrangement. This can be particularly relevant in seasonal locations where parents might reside part-time.

While multi-generational buyers are becoming a more popular option, the market remains diverse. First-time homebuyers continue to look for affordable options, while repeat buyers may look to upgrade to larger homes.

This trend is expected to continue presenting both opportunities and challenges for the housing market and understanding the drivers behind this trend can be valuable for people who are considering buying or selling their home. If you want to learn more about the housing market or have any questions, feel free to call or send us an email and we will gladly help you!