In-Law Suites Make Homeownership More Affordable

NEW YORK — The modern real estate market has led millions of aspiring home buyers to reconsider their approach to buying a home. Low inventory has led to high home prices. When paired with mortgage interest rates that have remained north of 6% for years, the high sticker price of homes has made many buyers wonder if homeownership is simply beyond their means.

It's impossible to know if or when home prices will come down, but some buyers have chosen to seek homes that can accommodate multiple generations. According to the Pew Research Center, the share of multigenerational homes rose from seven percent in 1971 to 18% in 2021. A multitude of factors have contributed to that increase, and housing affordability is one such variable.

In 2024, researchers studying multigenerational households at the Wharton School at the University of Pennsylvania noted that housing affordability declined considerably in recent years but also had been on the decline for decades. As homes become less affordable, the number of multigenerational households tends to increase, and that's something modern buyers can keep in mind as they look for a home.

In-law suites that accommodate multigenerational households can provide a pathway to homeownership for buyers who otherwise may be priced out of the market. Buyers considering homes with an in-law suite or those who want to add one to their existing homes can familiarize themselves with these convenient and potentially cost-saving features.

Separate entrance

Note the significance of a separate entrance. Whether you're looking for a home with an in-law suite or hoping to add one on to your existing home, a separate entrance allows residents to come and go as they please. That sense of independence is significant. In addition, a separate entrance can make a home seem less like a multigenerational residence, which at times can feel crowded, and more like a single generation home. That can afford all residents a little more peace and quiet in a typical day.

Tax increase

Expect an increase in taxes if you're adding on. As with any addition to a home, adding an in-law suite to an existing home is likely to result in an increase in homeowners' property taxes. The amount of that increase is contingent upon variables unique to each residence, like location and the size of the addition.

When shopping for homes with existing in-law suites, buyers can request existing tax information so they are not surprised by the number like they might be if they add on to an existing home. Despite that, it might still be in prospective buyers' best interest to add on to an existing property and pay the additional taxes than it would to buy a new home.

Features

Try to include features residents have come to expect when living independently. An in-law suite should include its own private bathroom, a washroom for a washer and dryer and a kitchen or kitchenette. If everyone in a multigenerational household is forced to use the same bathrooms, washers and dryers and kitchens, then the home might begin to feel cramped rather quickly.

Parking

Try to secure off-street parking. Though it might not affect the ambiance within the in-law suite itself, an off-street parking spot is a convenience residents will appreciate. Such a space will allow residents to come and go as they please and save them the headache of moving their vehicles for street cleaners.

In-law suites could be an in-demand feature as more homeowners and aspiring buyers seek to reduce housing costs by embracing multigenerational living arrangements.

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