Recent studies have shown a new trend in multigenerational living is changing the way housing development companies are building their homes. With baby boomers moving into extreme old age and adult children moving back after college many adults who would have otherwise been empty nesters are finding their homes fuller than ever.
In a study conducted by John Burns Real Estate Consulting, 44 percent of the potential homebuyers would consider accommodating their elderly parents and another 42 percent out of the 22,000 surveyed said they would be willing to live with their adult children.
Top reasons for this trend
1.Aging Baby Boomers: As the first generation to move out right after high school and college, the baby boomers set a precedent that lasted for a few generations. Now, the very same baby boomers are beginning to transition into extreme old age and families are considering whether they should place their parents into assisted living facilities or move them into the family home. More and more families are choosing to move their parents in with them; this trend has led homebuilders like Lennar to begin building multigenerational homes built with an entirely separate downstairs living quarters.
2.Recession: The current economic downturn is another reason this trend has started to develop. Millennials are emerging fresh out of college programs ready to work but are unable to find opportunities for employment in their desired field. Many are forced to take lower-paying jobs in retail, food service or other positions that do not pay enough to support a mortgage and student loan debt. This environment has brought many adult children back into the family home.
3.Immigration: The concept of the nuclear family developed in Western Europe and New England in the 17th century. The late 1700s brought about the industrial revolution, which made living in one home per parental unit a more economically viable option. This trend was not something that caught on in other parts of the world. Hispanic and Asian cultures continued to live in multigenerational homes, and as these cultures started to immigrate to the United States, the amount of families living in non-nuclear homes began to grow.
As the shift into multigenerational living grows, many families will need to start thinking about estate planning earlier. Grandparents who have chosen to move in with their children after selling their home should reexamine their estate plans, power of attorney and wills as the downsize in properties may change these items.If your family should need an estate planning attorney, our Phoenix estate planning attorneys are ready to get you started today. Contact us for a free consultation.