Multigenerational Homes: Is Multigenerational Living for You?
Posted by Justin Havre on Wednesday, September 18th, 2024 at 10:41am.
Living situations can be complex and are ever-changing: co-living culture has taken off in recent years, and the ability to rent rooms in the short term has grown with the internet. Multigenerational homes, however, represent a combination of the old and the new, providing a viable and comfortable living situation for people with different circumstances. Let’s explore the advantages and disadvantages of multigenerational households.
What Is a Multigenerational Home?
A multigenerational home is a single household that has two or more adult generations—usually understood as age 25 or older. The most common examples of multigenerational homes include adult children living with their parents or grandparents. It can also be understood as a household with a “skipped” generation, i.e. grandparents living with grandchildren younger than 25. Multigenerational homes don’t necessarily include young children, though many do.
There are many reasons that a family may choose to live as a multigenerational family:
- High cost of living. Younger generations may live with parents longer, or afford a home by having more contributing adults in the household.
- High childcare costs. Older generations often provide childcare during the day in multigenerational homes, freeing parents from the burden of high daycare costs or having to sacrifice a career.
- Cultural reasons. The Western ideal of each nuclear family having their own home is far from the global expectation. Throughout Asia, Africa, Latin America, and more, multigenerational living is the norm.
- Aging population. As healthcare improves and Canadians live longer past 65, multigenerational homes make providing care to aging relatives more convenient.
You've likely heard of a multi-family home, a free-standing building containing multiple units intended for different tenants—usually families. In other words, three different families may live in one multi-family home, each in a self-contained unit within the building. This is different from a multigenerational home, in which residents are typically related and may share a single unit.
However, this can overlap when considering living arrangements such as two homes built on the same lot, ADUs, and in-law suites, where each generation may have its own self-contained units. Multi-family homes can easily become great property types for multigenerational living.
Multigenerational homes come in many sizes and configurations. These may be houses that have separate apartments in a basement or backyard. It could also be a home with multiple kitchens, entrances, and separate living rooms. You could build a home addition to accommodate more people in an existing property. Some multigenerational homes are simply single-family homes with a larger number of bedrooms, possibly including multiple master suites.
These properties offer several practical advantages to their residents, including potential cost savings, shared duties, and improved familial relationships.
The Benefits of Living in a Multigenerational Home
When considering living in multigenerational home, it's essential to take a close look at the pros and cons of multigenerational living. What positives can you expect from sharing a house with adult family members of a different generation?
Shared Living Expenses
One of the significant advantages of a multigenerational house is shared living expenses. Several costs accompany homeownership, including the mortgage, property taxes, insurance, maintenance, homeowners' association fees, and utilities. With more adults earning a living, these costs can be split, improving finances and cash flow. Living expenses and utilities may be higher with more people in the home, but mortgages, taxes, and HOAs don’t change based on the number of residents.
Affordable Child/Adult Care
Childcare is a significant expense for many households, especially those with children too young to attend school. Canada has made massive strides in childcare affordability, but there is still a fair share of bumps to smooth out, and finding someone you trust to watch your children can be challenging. The cost and concerns associated with caring for aging relatives are similar.
Multigenerational households may eliminate most, if not all, of these costs by sharing the responsibilities among other family members. Even if you offer to pay a family member to provide care, you'll likely spend less money than you would on daycare, in-home care, or assisted living facilities.
Strengthened Relationships & Family Time
There are benefits of multigenerational households that go beyond financial. Adults and children benefit from spending significant time with multiple generations. Older people can sometimes suffer from feelings of loneliness and isolation. Being around children, in particular, can help with cognitive function, energy, and physical health.
Similarly, children of all ages benefit from being close to older relatives. Language development, literacy, civic engagement, goal setting, and empathy are some of the positives associated with growing up with grandparents. Living with family members of other generations helps with bonding and self-esteem, not to mention deeper cultural and familial ties through learning stories, traditions, skills, and more.
Tax Credits for Multigenerational Home Improvements
The Multigenerational Home Renovation Tax Credit is a key benefit of multigenerational living in Canada, as it provides financial support to families making home improvements to accommodate multiple generations under one roof. By offering up to $7,500 in tax credits for eligible renovations, this program helps ease the cost of creating a functional and safe living space for elderly family members or extended family. This encourages family cohesion, supports aging in place, and promotes shared caregiving responsibilities, making multigenerational living more affordable and sustainable.
Disadvantages of Living in a Multigenerational Home
While the benefits of multigenerational households are compelling, you should also consider some potential challenges. Think about some short- and long-term changes that would occur while living with adult children or parents.
Communication/Boundaries
The most vital advice given by multigenerational households to those considering it: practice clear communication and set clear boundaries.
Parenting is a common hurdle in multigenerational homes, especially when the middle generation parents differently than the older generation. After all, the grandparents have already raised one generation of children! Allowing the middle generation to take the lead in disciplinary matters and other decisions doesn’t always come easily.
Financial contribution is another factor that needs to be addressed. Some families are uncomfortable making one party pay rent, preferring a more free-flowing financial give-and-take; for others, not defining responsibilities makes one party feels taken advantage of.
When buying a multigenerational house, communication is especially important to ensure that everyone can come to an agreeable compromise.
Less Privacy
Although having more people around can improve relationships, it can also present significant obstacles, such as a lack of privacy. Having time and space to yourself is essential, but this isn't easy when sharing a residence with more people than usual.
Respect between family members is important, so you'll need to find ways to establish boundaries. Creating dedicated spaces for solitude can be helpful in a multigenerational home. Think about a basement, study, or exterior building where individuals can escape. If you're contemplating a new construction home, look for floor plans with added privacy. While you’re at it, you’ll also want to look into floor plans suited for multigenerational families, such as universal design.
Married couples often note that it may take conscious effort to carve out dedicated couple-time in a multi-generational household.
More Noise
With more people around, noise is sure to increase. Consider also that older adults may be more sensitive to the volume of energetic young children. Older children sometimes enjoy listening to music or playing video games at higher volumes.
Thinking about ways to manage noise in a multigenerational household is crucial. Creating designated areas for play and enjoying music and entertainment can help. Invest in noise-cancelling headphones, ear plugs, or sound-dampening drapery to control the transfer of sound in rooms.
Is a Multigenerational Home Right For You?
Sharing a house with your adult children or parents can be a win-win situation for everyone involved. It can strengthen bonds across generations, improving quality of life. Over the past two decades, multigenerational homes have increased by over 50% in Canada, mainly contributing to aging populations and rising living costs. Cutting living expenses and reducing care costs are two significant financial benefits of multigenerational households.
Think about the features of an existing or new residence conducive to a multigenerational household. Designated private spaces and noise management can help offset some of the disadvantages of this living situation, including less privacy and more noise. Remember that respect and boundaries are critical in establishing and maintaining a happy multigenerational home.
