Originally published in The New York Times

Gary Acosta: Lender Bias Against Multigenerational Buyers Reflects Housing Affordability Crisis and Limited Choices

Gary Acosta, NAHREP Co-Founder and CEO, addresses lender bias against multigenerational buyers due to perceived risk, linking it to an affordability crisis and limited choices in housing. Acosta advocates for more ideal housing solutions


February 28, 2024

These potential changes in household composition can make lenders wary of multigenerational buyers. “There is a bias against families who pool their resources to purchase a home,” said Gary Acosta, NAHREP’s chief executive and co-founder. They may be considered “riskier,” he said, because if a family member who joined the loan just to secure financing does not live in the property, moves out, or rents another place, the person is “not as vested in that property.”

Even beyond the issues with lenders, Mr. Acosta said he did not think multigenerational buying was ideal, because it’s often not done by choice. “I think it’s a reaction to what I consider to be one of the most challenging affordability crises that we’ve seen in a generation or more in the industry,” he said. “People are doing what they have to do, not necessarily what they want to do.”