Necessity drives 'family reunion' real estate deals
Multi-generational homes 'a very strong trend'
By Mario Toneguzzi,
Calgary Herald
May 21, 2010
Family reunions are taking on new meaning in the real estate market, according to a recent survey by Coldwell Banker Real Estate LLC.
A survey of its real estate professionals in both Canada and the United States found that a large percentage have noticed in the past year an increase in homebuyers looking for a property to accommodate more than one generation of their family.
Overall, 37 per cent of respondents said they have seen an increased demand for multi-generational homes, but in Canada the number was 45 per cent. And in Canada, the real estate professionals cited health-care issues (52 per cent) as the top reason why people would move into a house with other generations of their family.
Financial drivers were second at 45 per cent, while less than one per cent cited a strong family bond as the main factor.
John Geha, president of Coldwell Banker Canada, who was visiting Calgary, said one of the main reasons for the trend is the aging population of baby boomers.
"Throughout the world, multiple cultures really bring the family back home and are taking care of each other, whether it's the child taking care of the parents or the child taking care of the grandparents," said Geha. "But also you have the grandparents helping out because you have a dual-income household with young children and it makes their concerns of taking care of their children a little more relaxed because they have that family member there."
Another factor, of course, is the cost of housing and the loss of retirement funds some people may have felt over the financial market meltdown in the past year.
"Now they're able to pool their resources . . . and bring their families back home," said Geha, adding that he has talked to a number of contractors and builders who are making special arrangements in homes to accommodate older people.
"It is becoming a trend, a very strong trend," he said.
The increased financial costs in home ownership is evident in the Calgary market. According to the website of Mike Fotiou, of First Place Realty, the average MLS sale price of a single-family home in Calgary month-to-date until Wednesday was $486,064 which is up from $460,378 for the month of April and up from $436,427 in May 2009.
The average MLS sale price of a condo in Calgary month-to-date is $310,709, up from $289, 588 in April and $275,212 in May 2009.
Coldwell Banker conducted an online real estate survey on trends regarding multi-generational home buyers and sellers in January. The survey yielded responses from 2,360 Coldwell Banker real estate professionals across the U.S. A separate survey of Coldwell Banker real estate brokers from over 40 markets across Canada in April identified similar trends in the Canadian market.
