With recession hurting consumer spending and housing remaining unaffordable for families across the country, the trend of buying multi generational housing is on the rise. This kind of housing allows people to share the cost of the house with their parents or adult children.
Unemployment is hovering close to 10% and purchasing power of consumers has been badly hit because of the recession. This has meant that people can no longer afford to buy a house on their own, and they are turning to other family members for help, who themselves are in a similar situation in many cases.
As a result, the demand for houses where large families can be accommodated is on the rise and most real estate agents don’t see this trend changing anytime soon. With economy recovery projected to be slow and painful and no sign yet of unemployment is easing, their prediction is likely to be correct.
Not a good sign for the housing market
Although the demand for multi generational housing has given some boost to the housing market in the short term, it is not seen as a good sign in the long run. Real estate analysts point out that as more and more families choose to stay under the same roof with their parents or adult children, it would have a negative impact on housing demand. While the same extended family would have bought two or more houses previously, now they are settling for a single property. However, there is no reason to believe that the trend will be irreversible, and in the next 2-3 years as the economy gets back in shape, demand for separate housing could well reemerge.
Costly managed care
Just as working families are finding it difficult to buy a new house, seniors are also finding it difficult to afford managed care. Occupancy rates for senior housing have fallen significantly in the last few years, confirming this trend. This factor too is playing a part in seniors and their families living together in one house.
Construction companies respond
Construction companies have recognized the demand for multi generational housing and they are responding by making alterations in their new projects. New housing projects now often have extra bedrooms and bathrooms or additional areas attached to the house so that while the cost of the house can be shared, people can maintain some amount of freedom and privacy in how they live.