Combatting the Canadian Housing Crisis: Multi-generational Living

This is the first in a series in which we explore creative paths to home ownership.

When people think of the good old days they usually pictured themselves in some vaguely 1950’s-esque suburban utopia where everyone has a white picket fence and a Country Squire station wagon. A three bedroom family home used to cost around $15000, or roughly half of the single annual income which is all you needed. The kids would move out shortly after graduation to pursue jobs in the thriving economy and you would enjoy an empty nest until you retired at 55 and moved to a condo on the golf course with a view of the 9th green.

Those days have long since passed, if they ever existed outside of sitcoms and popular fiction. Today many people are working two and three jobs just to get by. Home ownership is so far out of the reach of the average Canadian consumer that it might as well be a work of fiction. With rents steadily rising it’s difficult to squirrel away a down payment, if there were even any reasonably priced homes to buy.

What Are My Options?

It sounds pretty bleak but there are options out there that can benefit the entire family. In this first article in our series, we are exploring the benefits of multi-generational living. It’s not for the faint of heart and only you can determine whether this type of lifestyle is appropriate for your family. Not everyone enjoys a warm relationship with their relatives and this whole concept is based on boundaries and courtesy.

What I can say is that if the thought of living in close proximity doesn’t immediately turn your stomach, then it’s worth at least exploring the idea. Densifying your household can save everyone money on their monthly expenses and provide mutual benefits to all parties involved. Pooling your capital and resources means you can get a lot more house for a lot less money.

Five Considerations

Here are five things to consider before taking the plunge:

Lawyer Up!

Both sides of any agreement should be represented by legal counsel. As tempting as it is to say “We’re family! We don’t need a lawyer!” I strongly advise you to avoid that temptation, for the protection of everyone involved. Having a legal agreement in place will clearly define everyone’s rights and responsibilities and avert future disagreements. It also helps with estate planning and ensures that everyone is on the same page with regards to the duration of the partnership and expectations for living.

Establish Healthy Boundaries

It’s important that everybody involved has a clear picture of what living together is going to look like. They say, “Good fences make good neighbours” and that is never truer than when your neighbours are your nearest and dearest. If you’re lucky you might find a property that already fits your family but here in the South Okanagan that’s like finding a unicorn. It’s far more likely that you’ll end up renovating an existing property to suit your needs so make sure you take things like separate entrances, personal yard space and parking into consideration. A huge part of my work at Okanagan Development Consultants involves the planning of renovations and additions. I can help you transform any space – but putting the time and effort into choosing a property that ticks at least most of your boxes will save you money in the long run.

Expense Sharing

We’ve talked about some of the less fun practicalities of shared space but let’s take a second to talk about the primary benefit: shared expenses. Most utility companies charge a base rate for service to an address and then bill you for usage. Why pay the twice the base rates for Power, Cable, Internet, Phone, etc. when you can split the bill in half? Take a few minutes to figure out an equitable division based on usage and everybody saves! Your mortgage and property tax bill gets cut in half too and with everyone owning a slice of the pie there’s no rental income to pay tax on. You should establish a separate bank account for repairs and replacement. If you’re buying in Penticton, for example, you will likely have a sewer connection but if you’re in a rural area like Naramata you will have a septic system. Paying into a separate fund, even if it’s only $50 a month each, means no one is out of pocket when it’s time to pay the pumper.

Division of Labour

This is another area where Multi-Generational living really helps a modern family out. We’re expected to parent like we don’t have jobs and work like we don’t have children. The older generation may be fiercely independent and reluctant to accept the help they likely need as they age. The youngest are either in daycare or left to their own devices after school. A shared living situation, where all parties are comfortable with their role, can be beneficial to everybody!

Some of us at ODC have teenagers. They don’t need a “babysitter” per se, but it gives us peace of mind knowing there’s an adult around the house if there’s an emergency while we’re at work. My in-laws are still pretty young and enjoy gardening and yard work but as they find themselves slowing down, I’ll be there to take up the mantle.

Quality Time

One of the most overlooked benefits of these shared living situations is the time you get to spend together. My oldest is learning how to grow vegetables from Grandpa, and Grandma is learning how to use the internet from my youngest. My garden produces a regular flow of veggies which I turn into meals to share with my parents, and they make wonderful salsa that they share with us. We usually take turns shovelling the driveway in winter but sometimes we tackle it together and spontaneous snowball fights have been known to break out. We all benefit from each other’s knowledge and experience which is something that is frequently lacking in today’s society. Sharing the space might not always be fun and games, and it’s a good idea to establish the ground rules about personal space and “noisy” hours early on. But we’re all working towards the same goal, which puts us on the same team.