Did You Know? Multi-Generational Households Fuel ADU Growth.
The aging of the Baby Boomer generation and the even larger Millennial population has resulted in a shift in the way people live. In 2016, the number of multigenerational households increased to 20% of the U.S. population, an all-time high.
While some demographics are more likely than others to live in multigen households, the trend is growing across nearly all racial groups, most age groups, and both men and women, according to the Pew Research Center. (The Pew study defined “adults” as those 25 or older in order to avoid including college students still living at home.)
There are many reasons for the increasing popularity of shared housing — rising costs of living, health factors, and lack of affordable housing are the most common.
Millennials represented the largest group living in multigen households as 33% of those aged 25-29 lived with their parents. On the other side of the coin, 24% of those aged 55-64 chose to live with their adult children, and 21% of those ages 65 and older are living with their children or adult grandchildren.
Accessory Dwelling Units (ADUs), commonly known as “granny flats” or “in-law suites,” are becoming the preferred solution to multigen living. These smaller housing units are sometimes attached to the main house and sometimes detached, but generally have their own entrance, kitchen, and bath.
Most municipalities limit ADUs to 800 sq. ft. or less, with some requiring a minimum lot size. ADUs fall under “in-fill housing” – ways to squeeze more homes into walkable, bikeable, high-demand areas. Much like having a pool, some people love the idea while others are wary of the extra upkeep and maintenance.
If you’re interested in purchasing a home with an Accessory Dwelling Unit — or want to see if one can be built on your property — please contact the team at Estate & Investment Realty Group.