Multigenerational Households

Multigenerational Households

A multigenerational household is defined as more than two generations of the

same family living under one roof. Multigenerational households are common in other

parts of the world. They are still uncommon in most areas of the United States, but lately they have been growing in popularity. Throughout the country, multigenerational households represent just a fraction of the population. According to the 2000 census, four percent of all U.S. households have three or more generations under one roof. (MAX) This trend is more common in some parts of the country than in others. There are many different reasons for this surprisingly rising trend.

One significant factor for this new trend driven mostly by economics is home

prices. The cost of living and owning a home has become increasingly more difficult over

the past few years. This is much more common in those markets where affordable housing is scarce. (MAX) California and Hawaii are among those high price markets. California alone has over six-hundred and forty-four thousand households where three or more generations live under one roof. (Seligman) As home prices in many areas have doubled, most incomes have not. In many areas of the country homebuilders and mortgage agencies have taken notice.

Several homebuilders have introduced what is now known as "accessory dwelling

units," also known as "granny flats," this new feature has become more common in some

new housing developments. (MAX) In downtown Orlando, new town homes come with

the option of a first floor studio apartment with it's own entrance. This feature is most

popular with families who want private space for their parents or adult children. Almost a

quarter of all town homes sold in downtown Orlando consist of some sort of

multigenerational arrangement. Ashley Custom Homes in Baltimore has also been

receiving requests for homes that would accommodate more family members. "Right now

Ashley Custom Homes is working on a colonial with 5,000 square feet for the main house

and 1,200 square feet for the mother-in-law apartment," says owner, Janice Strauss.

(MAX)

Armstrong Builders, another popular home builder based near Honolulu, has

thrived in the island housing market. Island housing has long been known for its high land pricing and as unaffordable for those of middle or moderate income. Armstrong's new approach to maximizing real estate is to build homes within homes, in which two or three families are living together under one unique architectural roof but, enjoying separate bedrooms, living areas, and bathrooms. Multigenerational housing often involves entire generations of the same family living together and quite often sharing unique kitchen and common areas. (HGTV Dreambuilders)

Mortgage agencies have also adapted to the growing demand in the

multigenerational household market. Fannie Mae, another homebuilder, recently

launched a campaign pilot in Orlando called "Seniors and Family Together." This new

mortgage campaign defines seniors as people who are 55 and older. The campaign considers up to thirty percent of the senior's income when qualifying borrowers for a

home mortgage, but does not actually require that the senior's name to be listed on the

note for the home. This is great for multigenerational households because families need to

have income at or below one-hundred and thirty percent of their area's median income to

qualify for a home mortgage. (MAX)

Another significant factor in the growing popularity of multigenerational

households is immigration . Traditionally , multigenerational families are minorities who

have recently immigrated to the United States. These households usually consist of the

parents, their adult children and grandchildren. In Hawaii where there is large Asian

population , more than eight percent of households are multigenerational. In California

where there is a large Hispanic population, close to six percent of households fall under

this arrangement. On the other side of the spectrum, only one percent of North Dakota's

population lives in a multigenerational setting. Border towns where immigration is

common are also more likely to have families which live with relatives for a set amount of time until they can get on their feet and move into their own home. Families tend to

"double-up" in their living arrangements when there are housing shortages due to over

population of the area or in areas where there is a high- rate of out-of-wedlock

childbearing is common. Out-of-wedlock childbearing in turn causes the unwed mother to

move in with her parents and as a result creating a multigenerational household.

This leads us to yet another reason for the convenience of a multigenerational

household. The number of young families are growing at significant rates, they seem to be turning more to their parents or grandparents to help raise their children instead of using traditional day-care or nannies. It was noted by the National Association of Home

Builders, that childcare seems to be a significant factor for multigenerational households,

particularly if the middle generation is divorced. (MAX) According to a poll taken by

home builders, Del Webb, in fact one quarter of baby-boomers say they expect their children or grandchildren to live with them at some point in time during their retirement.

(MAX)