Multi-generation home buying a Bay Area, national trend

SAN JOSE, Calif. (KGO) -- While it has been a cultural norm among some to see multiple generations sharing a home, home buying habits are reflecting a trend toward Millennials from a wider cross-section of the community doing the same-- and the reason is financial.

The trend is not only a Silicon Valley one, but also a national trend. More and more, houses-- especially larger ones-- are being purchased to be shared by a multi-generational family.

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The National Association of Realtors has been tracking the trend.

The largest number of multi-generational home buyers are 39 to 53-years-old-- people who identify as older Gen Y's and Millennials. Three out of four are blending their households to care of aging parents, or because their adult children are moving back home, or because those adults children never left home.

Real estate agent Mark Wong says more bedrooms are needed. He's with the Saratoga office of Alain Pinel Realtors.

"At least three bedrooms, four or five," he says. "That's why people love to buy the house and then they remodel, expand it to what they need."

Wong recently sold a three bedroom house, listed at $999,000. It's going to be expanded for a multi-generational family.

"The lucky buyers already engaging different contractors to come in to do measurements, planning," Wong said, as he pointed toward a patio area off the living room. "They probably can move this out, add one or two bedrooms here, or they can even build a two-story house to fit their needs. There's lots of potential here."

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Alan Barbic, president of the Silicon Valley Association of Realtors, says it's common for the grandparents to provide some of the money, while the adult grandchildren benefit by moving in so they can start saving for a future house of their own or to pay off student loans.

As we indicated, the listing price for Mark Wong's Willow Estates Drive listing in San Jose was for just under one million dollars, but it did sell for just over one million. The actual sales price can't be disclosed because the closing is not until the end of the week.

Take a look at more stories about housing in the Bay Area here.
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