Yahoo Finance 3 Ways Living in a Generational Home Saves Money
The U.S. average wage of $65,470 isn’t enough for many Americans. Nearly 40 million families, or 29% of the population, are one crisis away from financial instability, according to a recent CNBC report, and that figure doesn’t include the 37.9 million people in poverty, per the U.S. Census Bureau.
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High inflation and interest rates have taken a toll, and to alleviate the financial burden, more families are living under one roof to save money. The skyrocketing cost of living is fueling the growing trend of multi-generational housing, and inflation-weary Americans are saving money in a number of ways. Here’s how:
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Mortgage
The dream of owning a home is becoming increasingly challenging. Zillow reported that home shoppers today must earn over $106,000 to afford a home comfortably. This is a staggering 80% increase from January 2020, highlighting the drastic change in affordability for hopeful buyers, who are now more often relying on the support of friends and family.
In addition, the monthly mortgage payment has almost “doubled since January 2020, up 96.4% to $2,188 (assuming a 10% down payment),” per Zillow. The site stated, “Cobuying with a friend or relative is another way to help with affordability, something 21% of last year’s buyers reported doing.” By living generationally, the cost is split between family members, and becoming a homeowner is more plausible.
Child Care
Child care has always been a financial hit for families, and according to Care.com, prices have increased.
Average weekly nanny cost: $766 (up 4% from $736 in 2022)
Average weekly daycare cost: $321 (up 13% from $284 in 2022)
Average weekly family care center cost: $230 (up 0.4% from $229 in 2022)
Average weekly babysitter cost: $192 (up 7% from $179 in 2022)
For families in multigenerational households, members can share childcare responsibilities, drastically reducing their cost of living. This also allows family members to balance work and caregiving responsibilities more effectively, potentially expanding their career and income opportunities.
Utilities
Whether you rent or own, monthly utilities have increased, and paying them on top of mortgage and property taxes is a struggle for many. According to Forbes, the national average is $429.33 per month on utilities, which equates to over $5,100 a year. However, sharing the cost in a generational home reduces the monthly costs, and household members have more room to save.
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This article originally appeared on GOBankingRates.com: 3 Ways Living in a Generational Home Saves Money
