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Is Multi-Generational Living Becoming a New Norm?

By
Real Estate Agent with Keller Williams Realty Leading Edge

multi-generational families

 

Is Multi-Generational Living Becoming a New Norm?

 

I've been reading a lot about the Millennials' student loan debt and how it's affecting the housing market. Being that the Millennials mostly make up the "first time home buyer" market they are holding off on buying, or buying in a lower price point then what they have been approved for if they even buy at all.

These young adults are now starting family's and are not only burdened with student loan debt but also astronomical costs to rent. If they choose not to buy and they can't afford to rent that leaves them with moving back home with Mom & Dad.

According to a Pew Research Center report dated July 2014 "In Post-Recession Era, Young Adults Drive Continuing Rise in Multi-Generational Living."

Between 2000-2012 the multi-generational household rose from 15% to 18%, and you can bet it's going to keep rising for the foreseeable future.

 

Now let's talk about the Baby Boomers who built their "McMansions in the suburbs" during the 1980's & 1990's when bigger was better. Some of them are ready to downsize, but who can afford to buy their houses? The Gen X's & Gen Y's already own smaller homes in which they are raising their children in. They aren't moving up due to the economic devestation that 2008 brought. They lost jobs, savings, good credit and some lost their homes. They are struggling to regain some of their loss and save money to send their kids to college. We know the Millennials aren't buying McMansions, so where does that leave the Baby Boomers?

 

Enter the idea of multi-generational living and creative housing solutions.

If you can't sell it then change it. Consider renovations to your home and your way of life. This will allow you to age in place and bring new people into your home and start to live differently. This idea of multi-generational living isn't new. At and before the turn of the 19th century this was the norm. Children didn't leave the house and older parents were taken care of by their children. Everyone was under the same roof-but maybe on a different level.

The clients I've had this year are making the choice to live together. Mom & Dad, kids and grandkids. They are making it work because it's the best situation for all involved.

 

Is Multi-Generational Living Becoming a New Norm?

For me and my mother it certainly is.

Comments(8)

Sam Shueh
(408) 425-1601 - San Jose, CA
mba, cdpe, reopro, pe

That has been the trend here in San Jose, CA.  When the developed these semicustom monster homes in 1996 the McMansions were snatched up by McNguyens and McGandi families.  3 generations live together. No need to take grannie to nursing home.....

See this link about McMansions

Jul 15, 2015 12:24 AM
Spirit Messingham
Tierra Antigua Realty - Tucson, AZ
Third Generation Full-Time Realtor® 520 471-6900

Some good points I have touched on before.  On top of what you said, millennials had a front row seat to the housing crash.  They watched their parents get their backs broken by their mortgage.  In general, they do not like committments.  And we know buying a house?  May be the second biggest committment there is.

 Great blog, thank you.

Jul 15, 2015 12:30 AM
Troy Erickson AZ Realtor (602) 295-6807
HomeSmart - Chandler, AZ
Your Chandler, Ahwatukee, and East Valley Realtor

Heidi - I am not sure multi-generational living is the new norm, but it is certainly gaining momentum. I think it will continue to grow in the coming years.

Jul 15, 2015 04:01 AM
Myrl Jeffcoat
Sacramento, CA
Greater Sacramento Realtor - Retired

Years ago, when I was in my twenties, a neighbor told me life was a cradle to cradle existence.  It truly is!

In today's world we have boomerang kids, and we take care of our elders.  I'm seeing more multi-generational living going on all the time!

Jul 15, 2015 10:20 AM
Chris Ann Cleland
Long and Foster Real Estate - Gainesville, VA
Associate Broker, Bristow, VA

I think multi-generational living is definitely becoming more of a thing these days.

Jul 15, 2015 12:06 PM
Heidi Kelley
Keller Williams Realty Leading Edge - East Providence, RI
Your Rhode Island Real Estate Connection

I teach a Seniors real estate seminar twice a year and this is the topic of the class this time. Here in the Northeast we have a huge aging population and a lack of assisted living or nursing home space. Multi-generational living is picking up momentum in my area.

Jul 15, 2015 08:58 PM
Lynn Pineda
eXp Realty - Boca Raton, FL
Real Estate Promises delivered in SE Florida

Multi generational can only be a good thing Heidi Kelley - that's one new norm that benefits each other by sharing with our family loved ones.

Jul 15, 2015 11:09 PM
Kaye Swain
Keller Williams Real Estate Roseville CA - Roseville, CA
Your Roseville Real Estate Agent

My mom and me too - which started when my dad's health declined! And my parents and grandparents when my grandparents health required it. For that matter, I know of younger families who are still living together to help the younger couple save for their home. It helps all generations involved. 

 

The interesting thing is that it's new to us but used to be the norm for many families- especially those on farms. It's definitely a great way to help each other and benefit together. I'm glad it's becoming popular again. 

Sep 21, 2015 12:40 AM