In the early 1940s, the multigenerational household wasn’t uncommon. In fact, it was commonplace for elder parents to move into a bedroom of a child’s home whether it be due to financial hardship or some other mitigating factor (i.e. loss of job or early retirement). While this trend seemed to have died down in the 1980s, it is increasingly picking up today due to a myriad of factors. In fact, according to data from Pew Research, there are now 56.8 million Americans living in multigenerational homes compared to an estimated 28 million in such households in 1980. This post explores some of the reasons why getting back to the multi-generational way of living has made its comeback.
Millennials and Debt
The rising cost of a college education coupled with a competitive job market has made it difficult for many millennials to live on their own. Those who are either graduating or are recent graduates of college tend to carry a lot of debt and have a difficult time not only finding a job, but also finding one that pays well. So, they move home for a period of time until they are financially stable enough to strike out on their own.
The Desire to Care for Aging Parents in the Home
As our parents get older, the more we desire to keep close tabs on their health by living closer to them. For some families, that means living with them. As previously mentioned, in the past, grandparents would move into a room of a child’s home. Today, builders are taking that trend to a whole other level with home designs that include in-law suites, separate one bedroom apartments, or even a newer trend – the “Granny Pod”.
Child Care Costs are Rising
With stagnant wages and a job market that is improving slowly, many parents find it difficult to afford good child care. So, what do they do? They ask grandma and/or grandpa to move in to help offset those costs.
Those are just some of the reasons families are leaning toward the multigenerational home. There are mortgage programs out there that can assist home buyers with the purchase of a home that would meet the needs of a multigenerational family. Check with your local mortgage broker.
In the meantime, we’re just curious – do you currently live in a multigenerational home? If so, what benefits does your family experience by doing so? Please leave a comment below to continue the discussion.