Multi-generational households are increasing rapidily
June 20, 2012
Nash Law Firm, PLLC
By: Stephen J. Nash
In 1940 almost 28 percent of adults between the ages 25 and 34 lived in a multigenerational household. By 1980 that percentage dropped to 11 percent. By 2010 that percentage shot up to almost 22 percent.
Percentage of Adults Ages 25-34
Living in Muti-Generational Homes
Why the increase? The bleak economy, of course. The unemployment rate for young adults has climbed since 2007 and many have taken jobs that they didn’t really want but needed to take and approximately 1/3rd have gone back to school.
Not only are they moving home to save expenses but approximately 1/3rd are delaying either marriage, parenthood or both.
If you look at the 18 to 34 age range, almost 40 percent are living in multigenerational households. Anyone with older children are aware of this trend. In many cases, the children cannot afford to live away from home. In other cases, they would rather stay at home to have more money to spend on something other than housing and, in some cases, they are living at home to help their parents make the mortgage payment.
For many baby boomers one of their burning desires was to own their own home and their home became a symbol of their success. As they became more successful, they bought bigger and more expensive homes. Even as empty-nesters they often moved into the biggest, most expensive homes of their lives.
Will the younger generations ever look at housing the way their parents did? Many are going to live in a multigenerational home for a good share of their lives and many have seen the horrible financial consequences their parents have suffered in connection to their home debt. Once they move out are they going to want to own a home? Are they going to see their home as a reflection on how successful they are? Are they going to see owning a home as a way to accumulate wealth or will they fear that ownership of their home potentially will potentially cause financial hardship?
The answers to these questions will have a great impact on the real estate industry in the coming decade from how fast real estate recovers, how buyers are marketed and what type of homes are built. The likelihood that young adults are going to follow in the footsteps of their parents with respect to housing seems remote.
The foregoing is not intended to constitute legal advice for any specific circumstance, but is intended to reflect broadly applicable principles, under Minnesota law, relevant to a typical situation. Each set of facts and each contract is, or can be unique; the unique facts and specific language of the contract may require a different legal analysis and may result in a different outcome. Before proceeding in reliance upon this or any other general description of law, consult with an attorney competent in the field of practice relevant to your situation.
Copyright 2012 Nash Law Firm