Login
1 roof, 3 generations: Investors explore new opportunity
With multigenerational living on the rise, investors have been advised to consider property features that will support multiple generations living together and add value to their investments.
More Australians are seeking properties that can accommodate multiple generations, with one agent advising investors to keep up with the trend and think strategically about where to put their money.
According to Buxton Bentleigh director and auctioneer, Simon Pintado, his area, 13 kilometres south-east of Melbourne's CBD in Victoria, has seen an increase in multigenerational living driven by affordability, cost of living and lifestyle.
According to Pintado, multiculturalism was one of the main factors behind the re-emergence of intergenerational living in Bentley.
“Bentley is underpinned by a number of really good schools – most importantly, McKinnon Secondary College zone, which often attracts a lot of multicultural people, Chinese, Indian,” he said.
“Those sorts of cultures certainly want to have parents living with them.”
“Parents or grandparents in the home is not only a cure for affordability and cost of living, but by extension, can be great for liveability and for kids, especially.”
He said that families interested in multigenerational living have been looking at homes with specific features, such as double garages, enough storage and layouts that allow independence alongside shared living and accessibility for older generations.
“Multiple living zones are really important, both upstairs and downstairs, but having multiple master bedrooms on different levels is also a must.”
Pintado said many of the features can add extra value to a property, with a double garage often among the most underprovided amenities in a home.
“Largely due to council restrictions, which is baffling based on the amount of cars parked on streets.”
“Homes with multiple living zones and a double garage are hotly contested.”
He noted that ultimately, investors should strategically consider how to make their property fit for multigenerational living, advising them to be specific with where they spend their money and watch the trends.
He also said that, despite the trend becoming more popular nationwide, investors looking into multigenerational properties should consider Melbourne for their next opportunity.
“Melbourne is so undervalued at the moment. If there's ever been a time in the last decade to be buying in Melbourne, this is the time.”
“I've noticed a lot of interstate and overseas investors coming back to Melbourne because, in their words, it's undervalued in comparison to the other major cities.”
According to McGrath CEO John McGrath, the re-emergence of intergenerational living may be attributed to younger generations living at home for longer, while life expectancy has risen.
“Some people call Gen X the ‘sandwich’ generation, due to the fact that it is caught between looking after parents who are living longer and children who are not leaving home,” McGrath said.
“The proportion of 19-year-olds living with their parents has increased from 63 per cent in 2006 to 72 per cent in 2021,” he said in the McGrath Report 2026.
“Meanwhile, over the 20th and 21st centuries, life expectancy for Australian men rose from 55 to 81.”
He said the two factors, combined with a generational desire for family harmony, meant that Gen Xers were increasingly seeking housing solutions that could support three generations under one roof.
McGrath said that streamlined planning approvals from the NSW, Victorian, and South Australian governments would support the construction of granny flats on the same block as family homes, allowing for more multigenerational living.