When considering living with your spouse's parents, one option is to build a multigenerational home. In this article, we explain the three floor plan types of multigenerational homes, typical cost ranges, and their advantages and disadvantages.
There are three floor plan patterns for multigenerational homes
Multigenerational homes come in three types: "fully shared," "partially shared," and "fully separated," and these differences have a major impact on cost, privacy, and family relationships.
What is a fully shared type?
This is the simplest format, in which both households share all facilities and spaces. One advantage is that the working younger generation can more easily receive support with housework and childcare. However, differences in values can easily create stress, so compatibility is important. The typical cost range is 20 million to 30 million yen (650,000 to 1 million yen per tsubo).
What is a partially shared type?
This type shares some facilities, such as the entrance and water-related areas, while keeping the living spaces separate. Its appeal is that construction and utility costs can be kept lower than with a fully separated type. Costs vary depending on what is shared, and the typical cost range is 25 million to 40 million yen (800,000 to 1.3 million yen per tsubo).
What is a fully separated type?
This type has completely separate living spaces for the two households. Another benefit is the convenience of being able to rent out a vacant section in the future while maintaining a comfortable sense of distance. It is the most expensive option, with a typical range of 30 million to 45 million yen (850,000 to 1.5 million yen per tsubo).
Summary of typical costs by type
| Type | Typical cost range | Approximate cost per tsubo |
|---|---|---|
| Fully shared | 20 million to 30 million yen | 650,000 to 1 million yen |
| Partially shared | 25 million to 40 million yen | 800,000 to 1.3 million yen |
| Fully separated | 30 million to 45 million yen | 850,000 to 1.5 million yen |
We also recommend conducting a home loan simulation in advance and understanding your possible borrowing amount and monthly repayment before making a decision.
Why we recommend a fully separated type when building a multigenerational home
Although it is the most expensive option, the fully separated type offers long-term benefits.
- Privacy is protected, and the risk of family conflict is low
- It is easier to maintain good family relationships
- There is peace of mind in knowing someone next door can help in an emergency
- It has asset value because a vacant section can be rented out in the future
Related reading
- Why you should run a home loan simulation before buying a used condominium
- What are the common mistakes in homebuilding? Explaining failure cases in floor plans, storage, and location
Frequently Asked Questions (FAQ)
Q. Which type is the most cost-effective for a multigenerational home?
The fully shared type is the most cost-effective. As a guideline, the cost is 650,000 to 1 million yen per tsubo, with a total of 20 million to 30 million yen.
Q. Are there any tax incentives available for multigenerational homes?
With a fully separated type, you may be eligible for the special exception for small residential land plots (inheritance tax reduction) and reduced fixed asset tax. We recommend consulting a tax accountant.
Q. Which facilities are suitable for sharing in a partially shared type?
Bathrooms and washrooms are considered comparatively easier to share than the entrance or living room. Keep in mind that a shared entrance requires extra consideration when guests visit.
Q. Is a fully separated multigenerational home easy to sell in the future?
Because it can potentially be converted into a rental property, it tends to be easier to find a buyer than for a standard home. A good location makes it even more advantageous.
