Is Multigenerational Housing On The Rise?

Brian Kondo
Wednesday, March 26, 2025
Is Multigenerational Housing On The Rise?



Housing is changing. We see it all the time in one form or another. Houses have gotten smaller. Yards have shrunk. We’re building up instead of out. There is a noticeable shift from detached homes to townhomes. 


 

There are a lot of reasons for this change in the way we build homes: lack of space, affordability, and even how we live and the demands we have from a home has changed. 


 

With this change in how homes are built, we are beginning to see another trend gaining momentum - multigenerational housing.


 

Multigenerational housing refers to when two or more adult generations live at one property. There are two main reasons for this living arrangement:

 

  1. Adult children wanting parents to live with them to


    a) Help them get into the housing market


    b) Help them raise their young kids



     

  2. Seniors moving in with their children as they get older and need extra assistance.


     

The largest increase is currently coming from retired parents selling and moving into an in-law suite in their child’s house. If housing costs stay high, we might see more demand for multi-unit housing increases.




 


How many people are actually living in multigenerational housing?


 

Demand for multi-unit housing is up, but demand for housing is up in general, so are headlines that talk about multigenerational housing simply speculating?


 

The 2021 census from Statistics Canada found that multigenerational households have grown relatively quickly over the last 20 years (+45%) and now represent 7% of all households. Almost 1 in 10 kids (9%) under the age of 14 in the census, were living in the same household as a grandparent in 2021.


 

The vast majority of these children live in a multigenerational household (living with at least one parent and at least one grandparent).


 

The growing trend isn’t just coming from young adults priced out of the housing market. As of 2016, 11% of immigrant families in Canada lived in multigenerational housing, compared to the 6% of non-immigrant families.


 

Our population growth is largely immigration-based. It is important to remember that newly immigrated families are twice as likely to live in multigenerational housing, as they will not likely have the support or finances to live apart yet.


 

The Liberal government rolled out a multigenerational housing tax credit in their 2022 budget. If you are looking to leverage the Multigenerational Home Renovation Tax Credit, there will be some eligibility requirements you will need to comply with: 

 

  • “You had renovation costs to create a secondary unit within the dwelling on the property.



 
  • The renovation was completed in the tax year that you are making the claim, regardless of when the renovations started.



 
  • One of the individuals living in the existing dwelling or the new secondary unit must be a qualifying individual.



 
  • This is the only MHRTC claim for the qualifying individual (senior 65 years of age or older, or adult who is eligible for the DTC). Only one renovation can be claimed for a qualifying individual during their lifetime. 



 
  • Any person claiming the credit must be an eligible individual. 



 
  • The renovated dwelling must be located in Canada, owned (jointly or not) by the qualifying individual or a qualifying relation of that individual at any time during the renovation period tax year and ordinarily inhabited by both the qualifying individual and a qualifying relation of that individual within 12 months after the end of the renovation period.”





 


What does this mean for investors?

While investors may not qualify for this tax credit (unless you were adding the second suite to your own home for a family member), there is still an opportunity to be had here. 


 

Adding secondary and third units to properties is becoming more common for investors and these infill projects are great ways to meet demand.


 

Multigenerational houses differ from your standard second suite design.


 

Basement suites aren’t ideal for aging parents or young families. With an older demographic, ground-floor units are ideal. So, it's becoming increasingly common for families to build these homes to fit their unique needs. There are already a handful of companies in Ontario specializing in designing homes for multigenerational living.


 

The addition of accessory dwelling units (ADUs) could also be a game-changer. Being able to add a flat off of the house or behind the house can provide added privacy and a sense that both parties have their own home and space, even if it is on the same lot. You can add ground-floor living to your property without major renovations to the existing home.


 

Whether you’re planning to rent out multiple units on a property, or build and sell, it’s good to know that demand is on the rise.

 

This is actually a timely topic.  With the price of real estate increasingly out of reach for most people nowadays, both for rental and ownership housing, the demand for multigenerational housing will continue to grow.  


 

You can have the older parents and their adult kids pooling their income to pay the mortgage on one property vs. two.  


 

The older parents can also take care of the grandchildren, so their adult kids don’t have to pay for childcare and the grandkids get to spend quality time with grandma and grandpa.  


 

It’s a win-win for each generation - and it’s a great opportunity for investors!


 

If you are thinking of becoming a real estate investor yourself, or you are already an investor and would like to leverage your current investment(s) into more properties, or you are looking to sell one or more of your investment properties, give me a call at 905-683-7800.



I’ll be more than happy to answer any and all of your questions and help you with all your real estate investment needs.








 

Thanks For Reading Today’s BLOG!




Brian Kondo
Sales Representative / Team Leader
The Brian Kondo Real Estate Team
Re/Max Hallmark First Group Realty Ltd.
905-683-7800 office
905-426-7484 direct
brian@briankondo.com
www.BrianKondo.com

www.BrianKondoTeam.com


 

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