Baby boomers are upsizing at an increasing rate.
UP-sizing may not be what you think of when you consider Baby Boomers and real estate, but in today’s world, some boomers are actually looking to increase their house size. Boomers may prefer to live with their children and grandchildren, so that they can care for children and be cared for in their old age, instead of downsizing and moving into senior living communities.
But why boomers? Why shouldn’t they ask their children to upsize and then move into their adult child’s house? Baby Boomers likely have a lot of equity in their homes and solid credit, since they likely have been home owners for a long time. This enables them to secure a mortgage easily. The tightening of financing restrictions surrounding mortgages, coupled with the slow growth of income, scarcity of pensions, and increase in student loan debt often make it much more difficult for children of Boomers to secure a loan for a large house.
Even if boomers aren’t necessarily planning on living with adult children in the future, they just aren’t as concerned about maintaining a large house any longer. People are living longer and staying healthier, so the old ideas that seniors need a very specific set of housing requirements (such as few stairs, easy to reach switches and handles, easy to maintain, etc.) just don’t hold true anymore. Plus, to enjoy their lives as they age, boomers need space to entertain!
Here are four things you should know if you are looking into buying a multigenerational house:
Real estate agents are finding that the demand for multigenerational is on the rise and homes that fit this bill are selling quickly. Look for a realtor who is educated and passionate about this shift in the market.
Every day for the next decade, more than 10,000 baby boomers reach the age of 65. The increasing number of baby boomers means the demand will continue to increase for this housing lifestyle. It may even outpace the inventory on the market, so being ready to pounce when the perfect home becomes available is important.
Privacy is a top priority for families considering this option. Many layouts are created with a first-floor bedroom suite, casita, mother-in-law-plan, or a separate living space in a single-family home. Multigenerational units may even include a self-contained apartment with bedrooms, full, baths, kitchenettes, and separate entrances.
With more bedrooms and flexible use that accommodate home offices, aging parents, and older children, the resale value of this type of home is typically higher.
Our transition manager at The Cummings Team can help you upsize or downsize, or even add more space onto your current home, according to your needs.