From April through June 2020, 15 percent of homes sold were bought by multigenerational families, up 11 percent July 2019 through March 2020 and the highest rate since at least 2012, according to the National Association of Realtors (NAR).
The trend began in previous years with Millennials moving in with parents in a difficult job market. Also, more elder parents were occupying in-law apartments or backyard cottages at their children’s homes.
The COVIC pandemic accelerated the trend, analysts say, with many adult children wanting to ensure parents were not alone during the crisis.
Also, the current soaring housing market has priced many individuals out. Spreading down payments and monthly mortgage bills across generations creates opportunities for ownership that otherwise could not exist.
About 3 percent of homes listed in February on real estate website Zillow.com had language highlighting multigenerational possibilities, such as “In-law cottage” or “granny suite,” the Wall Street Journal reported.
These homes listed for an average of $598,000 and sold 23 percent faster last month than a year earlier, Zillow said.
The forces pushing generations together are growing: all homes on Zillow sold 14 percent faster last month than in February 2020 and carried an average listing price of $353,000, up 15 percent month over month.
The median U.S. home price in January was $303,900, up 14 percent year on year, according to the NAR.
TRENDPOST: Home prices have set record highs, the number of homes for sale has plunged to record lows, and building materials are in short supply. With millions of people out of work and millions more struggling to recover from losses they incurred during the economic shutdown, the trend toward multigenerational homeownership will grow through the next several years.
