6 Unexpected Benefits of Multigenerational Housing

Are you considering moving in with your family? Many SaverLife members have shared that they live with their grandparents, parents, children, siblings, or friends.

There are many reasons why SaverLife members have created multigenerational homes, but some major examples include:

• The ability to better support elderly parents
• More income streams to pay rent or a mortgage
• Reliable and consistent child care at home

When it comes to housing, there’s no right answer for how you share your space. But living in a household with family members can have some unexpected benefits for your financial health. 

Here are 6 ways multigenerational households can positively impact your family and finances:

1. Expense Sharing

One of the biggest financial benefits of a multigenerational home is that household expenses can be shared. If all of the people living together have the means to help pay for groceries, utilities, and even the mortgage, the financial burden on each family member is reduced.

This sharing of expenses can make living in certain areas more affordable. It can also help ensure that each family member can afford housing costs and still cover other necessary expenses like groceries and utilities. By sharing a home with other family members, the younger residents also have an opportunity to save and build their assets for the future. If you find yourself in this situation, consider opening a high yield savings account or investing some of the excess money to increase your total savings.

To guarantee that combining your finances benefits everyone, be sure to discuss exactly how you’ll split financial obligations beforehand. These can include groceries, utility bills, landscaping fees, or home repairs. It’s important to know what each of your family members’ financial situations look like and what they’re capable of contributing when it comes to shared expenses. This way, no one in your home is paying for more than they can afford.

2. Resource Pooling

Like expense sharing, living in a multigenerational household can also allow you to pool your resources with others. With more occupants in your home, you might be able to move into a bigger house, live in your desired neighborhood, or improve your commute to work. With more potential borrowers and more income coming in, your family might also qualify for loans that better meet your needs. This can help everyone in your household have a chance at homeownership, and possibly in areas that wouldn’t be available to each borrower on their own. 

3. Reduced Care Costs

Did you know that the average cost of childcare per year in the US is estimated to be nearly $15,000? For young families trying to make it on their own, this cost can be prohibitive. But if you live in a multigenerational household, childcare may be able to stay in the home. Older relatives living in the home might be able to take care of your children to eliminate this burden. This arrangement can also give your kids the benefit of more valuable bonding time with their family members. 

But it’s not just child care costs that multigenerational living can decrease. If your aging relatives need help or additional care, living in a house with you can ensure they get the right care without the additional expense. This can help your older family members who are living on a fixed income, and it can also help you avoid paying for professional care services.

4. Knowledge Sharing

In addition to helping each generation out with finances, living in a multigenerational household can also inspire you and your family members to share knowledge that can benefit everyone. Your older family members bring their life experiences, traditions, cooking skills, and any other specialized skills picked up throughout their lives. These can be passed down to you and your younger relatives to preserve culture and traditions. Similarly, younger generations can help your older family members keep up on popular culture and technology so that they can continue to connect with the world around them. 

5. Strengthening of Familial Bonds

In today’s busy world it’s easy to lose touch with family. Living in multigenerational houses can turn this around. Interacting more often with your family and being there throughout each other’s daily lives allows you to be more present in each other’s lives and strengthen your familial bonds.

6. Better Support

With the strengthening of bonds, there also comes an increased level of support. Instead of being isolated in your own home and dealing with problems on your own, you have family around to support you. With mental health issues on the rise, the benefits of having a solid support system around you are immense. Living in a multigenerational household can help you foster this support and a true sense of community.

Multigenerational Housing Offers an In-Home Support System

Multigenerational households create opportunities for growth and support, on a personal and financial level. If you’re considering moving in with relatives, talk to them about these six benefits and figure out how you’ll split expenses, look after each other, and build in time to connect. There’s no wrong way to live together, but the more you can communicate up front and create a plan for sharing your living space, the more meaningful and beneficial your in-home relationships will be.

And as always, keep SaverLife up to date on how your experience is going. We’d love to learn more about how our members are navigating multigenerational housing situations. Complete this five-minute form to connect with someone on our team.