By Amanda Bryan
amandabryan(at)compass(dotted)com
The 2022 National Association of Realtor survey reported that multi-generational home buying, at 14%, was approaching the 2020 post-COVID 10-year high of 15%. The two most common reasons cited in the survey were “Cost Savings” and “Could Afford A Larger Home Together,” which echoes what we have seen among our own clients in 2023 as affordability, difficulty competing in a low inventory market and a post-pandemic focus on spending time with family continue to be top of mind.
Affordability
Sometimes, the decision to live multi-generationally comes by financial necessity. In October 2021, Chris Jones and Casey Davidson began a home search in New Canaan and surrounding towns. Their budget was up to $800K which, in Fairfield County, often means either a smaller home that needs fixing up, or a condo. From October 2021- to October 2022 Chris and Casey made offers on 7 properties, losing all 7 to buyers who had higher budgets and no mortgage contingency (very often cash offers). In that same time period, the 30 year mortgage shot up roughly from 3% to 7% (a 133% increase), and the median price in New Canaan jumped from $1.3MM to $1.7MM. Forces beyond their control continued to push finding a home further out of reach, making it clear they needed to pivot their strategy.
Enlisting the help of Chris’s father and stepmother, the couple embarked on a completely new search. Instead of pursuing a home just for the two of them, they decided to buy a house together with their parents, which doubled their budget.
“Once they decided to buy a house together, we started looking at compound-like properties with guest houses thinking everyone needed their own separate buildings,” agent Megan Burley of Compass explains. “Ultimately we figured out that having separate houses was less important to them than finding a house that was big enough to accommodate everyone and could be modified to give everyone their own sense of space.” When they found a large house in Wilton with bedrooms in separate wings, they quickly made plans to capitalize on the bedroom configuration, add a separate entrance to the parents’ side of the house and create two cooking areas in the oversized kitchen, giving everyone space, privacy, and financial benefits of living under one roof.
Change in Circumstance
Ryan and Barbara Sheero, who recently moved to the area from California, also elected to pursue a multi-generational home. When Barbara’s father passed away in 2020 her mother, Fawn, who had been injured in a car accident, moved in with the Sheeros and their two elementary school-aged children. During that time, the Sheeros discovered that having a loving caregiver home with their children outside of school while they handled their demanding jobs delivered unmatched peace of mind and also substantial cost savings on childcare.
When a job opportunity presented itself on the East Coast, the Sheeros launched a Connecticut/Westchester home search specifically targeting homes that could accommodate the whole family, including Fawn. “Coming from California we wanted a finished basement so our kids could have a big play space in the colder months, but what was most important was finding a house with five bedrooms that would give Fawn her own space with her own bathroom, big enough to make her feel at home,” Ryan explains.
According to Ryan, there were definitely some ups and downs when Fawn initially moved in and it took some getting used to, but said that ultimately, “We came to the realization that this is the best case scenario for all of us. No one’s going to take care of our kids like my mother-in-law does. She was looking to stay busy after her husband died and her need matched our massive need for help with the kids so it’s a win-win.” They ultimately found a home that checked all of their boxes in Irvington, NY and closed in October.
Hybrid Model
When Steve and Ashley Prymas bought their house in New Canaan with a separate garage/apartment 10 years ago with their agent Christine Saxe of Compass, they envisioned using it as a potential home office space for Ashley or a place for Steve to play guitar – not a living space for Ashley’s parents. But today, Ashley’s parents, who are in their 70’s, divide their time between living there and their summer home in Maine.
When Ashley’s parents sold their home in Darien a few years ago they approached Ashely and Steve offering an arrangement where they’d co-invest in renovating and modifying the garage, which needed work, exclusively into an apartment and live there from November to April every year. At the time, Ashley and Steve’s son was in middle school and with two working parents everyone enjoyed the benefit of having grandparents so nearby. “It was definitely an adjustment at first,” says Ashely, laughing. “We had to set some boundaries with them and figure some details out. Like, what expenses do you split? Any? All? We also had to make a rule that there was no popping in unannounced because Steve works from home now and if he is on a call he can’t have my mom just come in and start boiling eggs if she runs out.”
While Steve and Ashley were ahead of the recent uptick in multigenerational homeownership, Ashley says that the separate house, which is visible from the road, has increasingly generated interest from passers by. In the last two years notes from strangers wondering about the two structures have appeared in their mailbox, people occasionally walk up the driveway to ask about the apartment, and friends, who are considering a similar arrangement with their own parents, come by to see the apartment and how the houses relate to each other.
According to Ashely, the decision to live on the same property has benefited everyone. “My parents were able to keep roots near Darien, where they’d lived for years, their friends, their doctors, while also being able to watch their only grandchild grow up. My son sees them so much more than I ever saw my own grandparents. Having them here has been great. We are all closer as a family now than we have ever been.”
