The current economy has brought many changes to the real estate market; one in particular is multigenerational living. For those who aren’t familiar with the term, multigenerational living occurs when three or more generations are living together under the same roof. Adult children of Baby Boomers are moving back home in droves.
The driving force behind this trend is financial pressures associated with rising housing costs, higher health insurance premiums, and college debt. According to
The Saturday Evening Post, about 8.7 million young adults ages 25 to 34 became part of multigenerational households in 2009, an increase of 13 million since 2007.
Now, more than one in five young adults lives in a multigenerational household. According to the National Association of Realtors® (NAR) Profile of Home Buyers and Sellers, first-time buyers plan to stay in their current home for at least 10 years, while repeat buyers plan to hold their property for 15 years or longer. More homeowners staying longer in their current home translates to an increase in multigenerational living; adult children will live at home for an extended time and seniors will move in with their children.
The dynamics involved in living with extended family can be difficult to navigate, but we’ve found a couple tips that will help you survive this trend should it become your situation.
1. Set Ground Rules: Living with family presents a unique atmosphere; setting ground rules up front will help eliminate any tense situations. Determine what areas of the home are off limits to other family members, establish which times of the day are for private time and family time, and…
2. Talk About the Finances: With more adults living in the home, adult children or seniors, it’s crucial to discuss how everyone should pull their own weight financially. Figure out who is responsible for what costs and when the bills are due. It’s best to make sure everyone is contributing so that no one feels overburdened.
3. Create a Chore List: There is no way around this one! Adult children should not still expect their parents to clean up after them, and vice versa. Developing a chore system will ensure that everyone is helping to clean up around the house or running various household errands. To give everyone a fair shot, rotate the tasks. That way, one person isn’t always stuck cleaning the toilets!
4. Be Prepared for Tough Times: Combining households is bound to bring conflict. The sooner you prepare yourself for that inevitable fact and devise a system for handling the situations, the better everyone will be in the long run.
The PEW Research article The Return of the Multi-Generational Family Household states that, since 1990, the number of multigenerational homes has grown by 40 percent, with 50 million Americans living in them. Some people don’t think that it’s a negative, either. Rather, they believe it’s something natural. “Extended families all over the world live together, except here (in the U.S.) and northern Europe,” says Graham Neiderhaus, author of Together Again. “The nuclear family is a 50-year experiment that’s ending.” The numbers certainly seem to support that.
Whether it’s for financial reasons or not, the dynamics of American households are changing and multigenerational living becoming increasingly popular is evidence of that trend.
