Is creating a multigenerational home something many of us think about?
Multigenerational homes were once very common where grandparents helped care for grandchildren and, as the grandparents aged their children looked after them. Are we seeing a resurgence and what does it mean for the homeowner?


The cost of housing is always a topic of discussion in Australia. High prices, the challenges for first home buyers, the number of baby boomers wanting to downsize and sell their big family homes, and the move from the traditional family block to apartment living - these contribute to the continual ebbs and flows in house values. Low-interest rates and favourable economic conditions in Australia built some good momentum in the housing market last year, with prices being relatively steady. But since the beginning of 2020, house prices have been decreasing despite interest rate cuts and a number of government incentives.


Like most countries, the combination of low birth rates and longer life expectancy means that Australia’s population is ageing. According to the Australian Bureau of Statistics1, in 2019 15.9% of the population was over the age of 65. This cohort will increase at a faster rate over the next decade as more and more baby boomers reach this milestone. The percentage of over 65-year-olds still in the workforce has also increased slightly by around 5% over the past 15 years. Which means that most over 65-year olds are enjoying retirement.


As the complexities around managing and exiting the coronavirus economic and social shut down increases, so to do the financial decisions many people are or will have to make in relation to their mortgages.