Why Are Multigenerational Homes Becoming Popular in Toronto

Purchasing a home can be exciting; however, the housing market in Toronto can be challenging. With rising costs and strong competition, numerous families are considering alternative living arrangements. Building a multigenerational home is gaining renewed popularity for numerous reasons.

What Are Multigenerational Homes?

Multigenerational homes or intergenerational homes, allow multiple generations of a family to live together in the same household. This includes grandparents, parents, in-laws, children, and extended relatives such as aunts, uncles, and cousins.

A key aspect is the availability of different living areas within the home that encourage privacy and independence for each generation.

Why Is Intergenerational Living Becoming Popular in Toronto?

This type of household can provide a good balance of independence and help. A new report from Statistics Canada shows that between 2011 and 2021, the number of multigenerational households in Toronto grew by 15%. This increase demonstrates a shift in how families are choosing to live.

Here are the common driving factors leading to this old yet renewed living situation in Toronto:

Affordability: Toronto’s housing market is notoriously expensive. Building a multigenerational home allows families to share resources and living expenses, making homeownership more attainable.
Caregiving: Intergenerational homes can be ideal for caring for aging family members. Grandparents can remain independent while receiving assistance from loved ones.
Stronger Family Bonds: Living together fosters closer family relationships, creating opportunities for shared experiences, emotional support, and intergenerational learning.
Cultural Norm: Many cultures embrace multigenerational living as a natural way to support families. The trend is becoming increasingly popular with Millennials and Gen Z.

Types of Multigenerational Homes

There’s no one-size-fits-all approach to multigenerational living.

Here are some popular options you can consider:

Main House with a Basement Apartment: This classic option provides separate living spaces within the same dwelling.
Secondary Suite: Build a separate guest house on your property or extend your home to create the extra space needed.
Duplex or Triplex: Purchasing a multi-unit property allows for separate apartments under one roof.
Custom-Built Multigenerational Home: Working with a builder to design a home with dedicated spaces for each generation creates a customized living experience.

Subsidies and Tax Credits to Build a Multigenerational Home

Through the Multigenerational Home Renovation Tax Credit (MHRTC), the Canadian government helps fund home improvements for those wanting to build a multigenerational home. This allows a senior or disabled adult eligible for the disability tax credit to live with a qualifying relative.

Eligible people can get a credit for up to 15% of the costs of each renovation, or up to $7,500 per claim, for up to $50,000 in qualifying costs. Costs that are directly related to remodeling are considered qualifying expenses. Learn more through the CRA to see what expenses are eligible.

Want to Build a New Home or Add to Your Existing Home?

Building a multigenerational home can improve your family’s life. Avvio Fine Homes specializes in making beautiful and functional homes that can be customized to fit your needs. From planning to building, we can help you every step of the way.