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MortgagePoint » Your Trusted Source for Mortgage Banking and Servicing News 28 February 2025 F E A T U R E S T O R Y THE RISE OF MULTIGENERATIONAL HOUSING: LENDING TRENDS AND OPPORTUNITY Driven by economic pressures, demographic shifts, and evolving social norms, multigenerational housing is becoming more commonplace and reshaping how we live, lend, and borrow. . B y DA N C A T I N E L L A A mid the whirlwind of economic forces impacting the housing market, one trend stands out. Multigenerational housing, once a rarity, is now becoming common- place and reshaping not just how we live, but also how we lend and borrow. There are dozens of scenarios that could cause families to choose multi- generational housing. Imagine a young couple, burdened by student loan debt, and discouraged by the competitive housing market. New parents struggling with the high cost of childcare could decide to live with relatives to make ends meet. Even middle-aged couples often welcome their aging parents into their homes and must renovate their space to accommodate their changing needs. These are the realities of multigenera- tional homes, a trend driven by econom- ic pressures, demographic shifts, and evolving social norms. For mortgage professionals, this presents a chance to think beyond tra- ditional lending practices and become true financial partners for these fami- lies. But capturing those opportunities starts with understanding the unique needs and motivations of borrowers at unique life stages. Events Shaping the Multigenerational Housing Boom T he rise of multigenerational house- holds is not a standalone shift … it is fueled by a confluence of factors, each playing out in the lives of everyday Americans. Here are three common scenarios—along with strategies that can help lenders and their originators anticipate and deliver on unique needs. 1. The Boomerang Generation: Graduates Navigating a New Financial Reality R emember the excitement of gradu- ating college and the anticipation of launching into independent adulthood? For many young people today, that dream is colliding with the harsh realities of a challenging economic landscape. Skyrocketing housing costs, often coupled with the weight of student loan debt, are forcing a growing number of graduates to move back in with their parents—a phenomenon often dubbed the "Boomerang Generation." But this seemingly temporary arrangement can be a steppingstone to long-term financial stability and eventual homeownership. Here's how lenders can seize this op- portunity to engage the Boomerang Gen- eration and build lasting relationships: • Educate them on homebuying readiness: Young adults are eager for financial guidance and often lack the knowledge and confidence to prepare for their first home loan. This includes budgeting for a home, understanding and improving their credit rating, saving for a down pay- With more than 20 years of experience in mortgage lending, D A N C A T I N E L L A is a seasoned mortgage executive focused on driving digital transformation through all channels of lending. In an ever-changing digital landscape, Catinella keeps a constant pulse on the next innovation that could change the way business is conducted. As Chief Lending Officer for Total Expert, Catinella identifies and develops high-impact innovation strategies that align with the company's business goals and growth priorities. He works with Total Expert's customers to dig into the problems they are looking to solve and aligns Total Expert's innovation strategy with their business goals.