Baby boomers are living longer. They’re finding that they are taking care of their parents, and their millennial children (who are approaching college age) are staying at home longer as well. If you’re considering buying a home to fit your many different family members, you may want to consider multi-generational housing.
Here are the benefits to buying a multi-generational home in Placer County.
Retired parents stay active
Multiple studies have linked early retirement to cognitive decline placing those at risk of developing early onset Alzheimer’s and even Dementia. However, retirement doesn’t have to mean not working. It’s helpful to be close to family and continue performing some type of work even if you’re not doing the same form of work. Researcher Andel (TEDxFulbrightCanberra) who did a TED talk on “Is retirement bad for your brain,” performed years of research and found that those who volunteer tend to experience less of a cognitive decline.
Reduction in housing expenses for older parents
If you have older adult parents, it can also reduce their housing expenses making it easier on everyone involved. There is a study that followed 100 individuals throughout their 40-year career that is discussed in the book Hold by Linda McKissock and Jay Papasan.
The study showcased that on average:
- 1% will be wealthy
- 4% will be financially secure
- 5% will continue working not because they want to but, because they have to
- 36% will be deceased
- 54% will be broke and dependent upon family and friends
Statistically, many individuals will need some financial assistance when nearing retirement. Having multi-generational housing is a potential solution to this concern.
In-home help with small children
Having multiple generations living in your home, particularly older adults can be especially helpful when you have younger kids who require childcare. The average daycare in the Sacramento and Placer County area costs upward of $1,187+. Perhaps you may have some older parents or young adult children who may be able to spare you that cost.
Adult children living in the home can save money for the future
If you have children attending college, it can save them a lot of money. If your adult children are attending college in state, after tuition, the second highest expense is room and board. By having ample space for your adult children, perhaps having some in-law quarters where they can start to establish some form of independence, they can save a lot of money and avoid the dreaded feeling of going off to college only to find themselves back at home.
Approximately two-thirds of the millennial generation (individuals born between 1980 and 1998) still consider buying a home the American dream. By avoiding the costs of room and board, they’re setting themselves up to potentially save enough to purchase a home in the future. This is vital especially when student loans are one of the biggest hurdles stopping millennial’s from buying a home.
Greater financial stability for all
Rental rates are high. They’ve risen over the past 5 years and they’re continuing to rise, but buying a home and splitting the housing costs may place everyone in a much more stable financial situation. Let’s look at the numbers.
Using conservative averages:
- The average rental rate in Placer County and Sacramento is between $1,500 and $1,700.
- If you purchase a $400,000 home in Placer County
- With a 30-year fixed mortgage
- An average mortgage rate of 3.89% on the date this article was written
…would equate to about an $1,884 mortgage payment.
Having multiple individuals in your household contribute even a third would reduce a portion of your housing costs to $628. A really great deal for all involved.
Where to find multi-generational housing in Placer County
- Check out new home builds – have your agent help you. They can work directly with the home builder and represent you and your financial interests versus representing the home builders bottom line. It’s best when you have the peace of mind knowing someone’s on your side.
- You can also look for some older homes with in-law quarters. Some areas downtown have in law quarters or a guest house. And if you find a home that needs a little bit of work, you can create the housing design that’s best for you.
You can have the benefit of looking both at new builds and older homes with character.
If you’re looking for help finding a multi-generational home in Placer County, contact us at Quantum real estate. Our brokerage is filled with top selling agents. We’ll connect you with your personal specialized agent to help you navigate the home buying process.