Real Estate Advice
The shift towards intergenerational living
Real estate is full of niche terms and one you might have heard a lot of lately is intergenerational living.
Also known multi-family housing, experts consider intergenerational living an important part of the future housing landscape and forecasts show it to be an increasing segment of the market. So what is intergenerational living and why does it matter?
What is intergenerational living?
Sometimes it’s much more practical, cost effective or even fun to share a house or property with additional family.
Intergenerational living is where two or more generations from the same family live within a single property at one time.
This can be inside one house or apartment or even across multiple dwellings on the same property. Each family typically has their own bedrooms, living space and bathroom whilst sharing the overall property infrastructure.
Factors influencing multi-family dwelling
With a number of economic factors affecting the housing industry, there is a trend towards an increase in various types of shared living.
The main driving factor behind this trend is reduced housing affordability combined with a higher overall cost of living. Interest rates, construction costs, stagnant wages and migration are all factors that reduce housing affordability.
And with all these costs hitting the hip pocket, some families find it makes practical financial sense to share the cost of housing and all live under the same roof.
This can provide added advantages, for example shared energy costs, reduced childcare costs due to grandparents looking after young children, and older family members staying in their own homes for longer.
Looking to the future
Whilst multigenerational living represents a small sector of the market, it is still significant and increasing rapidly.
Smart Property notes multifamily dwellings raised over $15.85 billion in institutional capital in 2022, with an additional 52,800 new homes expected to be completed by 2028.
They further note, the Australian Bureau of Statistics projects an increase in this sector of 63 per cent by the year 2046.
Although the government is enacting various schemes to combat housing shortage, such as The National Housing Accord, as overall economic factors drive up construction costs and limit affordability, additional factors such as aged care, energy efficiency and regional growth are all expected to play a part in the future of this sector
Add value to your property
Considering the needs of multigenerational families can be a great way to add value to your property.
In fact, some properties are naturally suited to housing multiple families, while others may only require a few small tweaks to be attractive to this sector.
Houses with separate entrances are considered desirable as they add a sense of privacy. Wide doorways and multiple living areas are also in demand.
A separate kitchen is not always required but multigenerational families do prefer an open plan dining room or large patio to allow everyone to come together. The tip here is to focus on both private and communal areas without necessarily making large structural changes to increase square meterage.
How we can help
If you’re considering buying or selling a property and seeking to understand the current market conditions, why not chat with one of our friendly agents to understand how we can help? We’re not just about property, but the people and the stories behind it.
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