Escalating cost-of-living pressures, low housing supply, and rent hikes are forcing many young Australians to either stay with or return to their parental homes. This trend is also reflected in broader household patterns. Data from the RBA shows that average household sizes are starting to increase again, after shrinking during the pandemic when group households split up.
During the pandemic, the average capital city household size reduced from around 2.63 residents per dwelling to 2.53, amplifying demand for housing - especially rentals. However, the latest RBA estimates indicate that households are becoming larger once again as group households and multigenerational living arrangements become more common. This shift suggests that more families are pooling their resources to cope with rental affordability and housing availability challenges.
Key strategies for selling a multigenerational home
For agents, refining your approach to multigenerational properties will not only expand your buyer pool but also increase your chances of successful transactions. Consider these key strategies:
- Multiple living areas: Emphasise the benefits of having distinct living spaces that provide privacy and comfort for each generation. This makes the home more appealing to larger families.
- Dual kitchens or kitchenettes: Highlight the convenience and independence that comes with having more than one kitchen. This feature is a significant selling point for families who value flexibility in meal preparation and dining.
- Separate entrances: Showcase properties with separate entrances for different parts of the house. This appeals to buyers seeking privacy and freedom within a shared space, enhancing the home’s versatility.
- Granny flats or In-law suites: Promote homes with additional self-contained units. These are perfect for extended family members and can significantly increase the property’s appeal to multigenerational buyers.
- Accessibility features: Point out ramps, wide doorways, and accessible bathrooms for elderly family members or those with mobility issues. Emphasise the home's adaptability, noting how easily these features can be updated or removed to suit future needs.
- Energy Efficiency: Highlight energy-efficient features and appliances that help reduce energy costs for larger households.
David Sharma, Sales Associate at McGrath Bankstown, stresses the importance of showcasing the full potential of multigenerational homes: “When marketing multi-generational homes or properties with dual-income potential, it’s important to showcase the entire property and everything it has to offer. Overhead drone shots are particularly effective as they highlight the property’s size and clearly display the living arrangements.”.
Sharma also points out how the way properties are advertised can attract a wider range of buyers: “A property listed as 42 and 42A, or a three-bedroom home with a two-bedroom granny flat, can be promoted as a five-bedroom home. Advertising this way can attract a much larger pool of buyers, including larger families and astute investors.”
Understanding buyer demographics and tailoring marketing strategies
For agents, understanding the demographics interested in multigenerational living is key. This market segment often includes families with aging parents, young adults returning home, and families looking to pool resources. Agents should leverage trends across suburbs or look at what consumers are searching for online to tailor their marketing strategies, ensuring they highlight the features most appealing to these buyers. For instance, virtual tours showcasing how separate living spaces can function harmoniously or social media campaigns that highlight success stories of families thriving in multigenerational homes can be highly effective. Emphasising the emotional and practical benefits of such living arrangements can resonate deeply with potential buyers.
Building a network of professionals for seamless transactions
Agents can enhance their value proposition by building a network of professionals who specialise in multigenerational living. This includes architects, interior designers, and contractors experienced in home modifications for accessibility and aging in place. Collaborating with these experts allows agents to offer comprehensive solutions to their clients, from initial viewing to post-purchase modifications. Additionally, having connections with financial advisors who understand the unique financial arrangements of multigenerational households can provide added support to buyers. By positioning themselves as knowledgeable and resourceful, agents can navigate the complexities of these transactions more effectively, ensuring a smoother and more satisfying experience for all parties involved.
About LocalAgentFinder
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