Nov. 7, 2017
Extended Families are Helping to Make Homes more Affordable
By Jim Bradley
There are a lot of households which are choosing to live as an extended family. These multi-generational households are becoming more popular and have proven to be a useful tool to support the families' structure and add to their economic strength. Millions of Americans currently are sharing a roof with their grown children or parents.
Realtor.com has reported, “Nearly 1 in 5 Americans is now living in a multi-generational household – a household with two or more adult generations, or grandparents living with grandchildren – a level that hasn’t been seen in the U.S. since 1950.”
The National Association of Realtors’ (NAR) 2017 Profile of Home Buyers and Sellers which states that 13% of home buyers purchased multi-generational homes last year.
There are many reasons for creating this type of household and the top 5 reported reasons are:
1. To take care of aging parents (22%, up from 19% last year) which is a Cost savings (17%).
2. Children over the age of 18 moving back home (16%, up from 14% last year).
3. Families who opt to take care of aging parents or grandparents at home.
4. Millennials who are looking to live with their parents while they attend school or save for a down payment.
5. Last but not least, basic economics.
For a long time a couple and their dependent children was considered to be the nuclear family. Recently Co-author John Graham of the book “Together Again: A Creative Guide to Successful Multi-generational Living,” states and explains, “We’re getting back to the way human beings have always lived in – extended families.”
There are many reasons this change is being ever more popular. We are seeing a growing racial and ethnic diversity in the U.S. population which helps explain some of the rise in multi-generational living; “Data suggest that multi-generational living is more prevalent among Asian (28%), Hispanic (25%), and African-American (25%) families, while U.S. whites have fewer multi-generational homes (15%).” Single women are a bit more likely to live in multi-generational lifestyle than their male counterparts (12% vs. 10%, respectively).
The trend has been that as home prices increase more families tend to go for the option of living together. These extended Family households are making a comeback. While it is a shift from a single generation living in a home, these extended family households offer a solution that many families are looking for as home prices continue to increase due to the lack of housing inventory.