Raleigh Area Home Building Trends
Get ready, the housing market is going to go through a big change. That change is multigenerational living and it is booming all over the country, including in the greater Raleigh real estate market. In the real estate industry, multigenerational housing refers two or more generations living under the same roof. The concept is not new, but today's design and demand for such housing has really changed.
What is a Multigenerational House?
A multigenerational home is essentially two private homes built into one, providing families the opportunity to reduce financial expenses and emotional stress. The first floor guest suite and the lower level basement apartment with lots of steps and terrains to maneuver, which never really worked well, have been replaced. The new designs take into consideration privacy, dignity and easy access for aging family members.
Out with the Old, In with the New-Gen
Multigenerational homes are totally different from the in-law suite of the past. If you were lucky, the in-law suite had a kitchenette and sitting area but most were really just a first floor bedroom with a private bath where grandma and grandpa tried to cram a lifetime of personal belongings into a small space hoping it would feel like home. They also shared a communal family room and kitchen in the main house with the rest of the family. This left everyone in the family feeling like a crowd of intruders were living together because privacy and dignity had disappeared.
To improve privacy many homeowners in the greater Raleigh area converted walk-out basements into in-law suites, but the steps soon became problematic and an expensive chairlift eventually needed to be installed. If children were still living at home when the lower level basement was converted into an in-law suite that area was often also used by kids playing ping pong in the next room. Again, privacy was lost for the entire family and dignity was sacrificed for the aging in need of help.
The new multigenerational designed homes being designed in Raleigh, Cary, Apex, and Morrisville live like two separate homes where everyone has their own special space. The new-gen homes have private entrances, two full kitchens and often times private parking. Custom builders are also equipping them to be handicap accessible with wider door frames and other features.
Benefits of Multigenerational Homes in the Triangle
A multigenerational home is really two private homes built into one providing lower cost living, safety, and security. They are in red hot demand! Multigenerational homes are now being designed and built to reduce the financial expenses on each household while reducing the emotional stress of worry over aging parents’ health and well-being when they’re living alone.
Many families in the Triangle area are pooling their financial resources and supporting each other by choosing to sell their existing homes and buy a new-generational style home. When mom and dad, and grandpa and grandma each have separate homes they each have their own expenses too. Mortgage payments, insurance, taxes, utilities, HOA dues, lawn maintenance and repairs times two. Young couples who buy new generational homes can benefit from the live-in daycare of their parents while keeping a watchful eye on their health and well-being. This housing option gives elderly parents the opportunity to maintain their independence while enjoying the benefit of financial support, resulting in a higher standard of life for all.
What Inspired the Multigenerational Home Trend?
There are several factors causing the demand for multigenerational homes. The economic downturn of 2008, rise in the unemployment of college graduates, daycare costs, divorce rates, longer lifespans, rising cost of assisted living and long term care, and the overall growing cost of living has birthed a new trend that I predict will be here to stay. Multigenerational living is booming all over the country as well as in the greater Raleigh real estate market.
Many home buyers are planning ahead by choosing to build a multigenerational home now to accommodate aging parents and the high probability of Boomerang Kids, which is a vocabulary word coined in the 90's. We all know Boomerang Kids who leave home for college or marriage only to return years later due to insufficient job opportunities or divorce. Many parents have delayed selling their large family home and sizing down to prepare for retirement in case their children need to return home. Times have changed. Ask your great grandmother or grandfather if their children could come back home after they moved out and you would hear, “NO WAY!” Out with the old and in with the new. A multigenerational home can provide a better living situation for all because the new designs offer privacy that the in-law suite of the past could not while giving Boomerang Kids a place to land too.
Aging Baby Boomers and Millions of Millennials mean Generational Homes are built to last in the City of Oaks. Developers are recognizing the growing need from the huge boomers and millennials combined population and are beginning to build neighborhoods to accommodate this influx. National builders, such as Lennar and Stanton Homes, have entered the Wake County housing market with entire communities being built to meet the rising demand. Custom builders have also experienced a growing trend over the past few years.
+7 Things You'll Want to Know About Multigenerational Homes
- Financing for such properties is not a problem. Mortgage lenders say a typical residential mortgage is all you need. Down payments tend to be low and mortgages are easy.
- Resale on these properties are excellent with the high number of Baby Boomers aging and 25% of adults age 24 to 35 still living at home.
- Appraised Value on new mortgages and additions are becoming higher because of the growing number of like properties in the local Raleigh real estate market. Demand is a positive factor.
- Income Producing – some Wake and surrounding county neighborhoods will allow you to rent a room or suite which may give homeowners additional income as they wait for the time the aging parents need to move in. Check with your homeowners association on this if you have questions.
- Nanny's Quarters – To save on the high cost of daycare and inconvenience of driving, many choose live-in Nannies. Generational homes are perfect for a Nanny’s Quarter and can easily be converted to an apartment for the aging family member later on.
- Building a custom home in the Capital City? Raleigh area homeowners are having architects plan ahead by designing future conversion space into their dream home.
- Renovating your current home? TowneBank Mortgage has an excellent renovation loan but, please check your neighborhood restrictive covenants before you construct an addition and consult a real estate expert on re-sale value of the addition in your current neighborhood.
Accurately Time Your Multigenerational Home Sale or Purchase
When selling and buying multiple homes, there are many pieces of a complicated puzzle to carefully put together. Please call Linda Craft & Team, REALTORS® today for a FREE consultation. We are a locally owned and operated real estate company that has been serving the Triangle for over 30 years. We've helped hundreds of people in a similar situations and would love to help you, too.