Multigenerational housing in Long Beach and other areas is coming back in a big way.
Multi-unit properties and single family homes as well as condos in Long Beach are being purchased by parents and their children together. We are also seeing siblings and other extended family members join together to purchase properties, which can help with affordability as prices continue to rise.
The increase in families purchasing together is not new. In the 1950s, about 21%, or 32.2 million Americans shared a roof with their grown children or parents. According to an article by Realtor.com, “Nearly 1 in 5 Americans is now living in a multigenerational household – a household with two or more adult generations, or grandparents living with grandchildren – a level that hasn’t been seen in the U.S. since 1950.”
Another report that illustrates this trend is the National Association of Realtors’ (NAR) 2017 Profile of Home Buyers and Sellers which found that 13% of home buyers purchased multigenerational homes last year. The top 3 reasons for purchasing this type of home were:
- To take care of aging parents (22%, up from 19% last year)
- Cost savings (17%)
- Children over the age of 18 moving back home (16%, up from 14% last year)
Valerie Sheets, Spokesperson for Lennar, points out that, “Everyone is looking for the perfect home for any number of family situations, such as families who opt to take care of aging parents or grandparents at home, or millennials looking to live with their parents while they attend school or save for a down payment.”
For a long time, nuclear families (a couple and their dependent children) became the accepted norm, but John Graham, co-author of “Together Again: A Creative Guide to Successful Multigenerational Living,” says, “We’re getting back to the way human beings have always lived in – extended families.”
This shift can be attributed to several social changes over the decades. Growing racial and ethnic diversity in the U.S. population helps explain some of the rise in multigenerational living; “Data suggest that multigenerational living is more prevalent among Asian (28%), Hispanic (25%), and African-American (25%) families, while U.S. whites have fewer multigenerational homes (15%).”
It makes sense then that Long Beach would be experiencing an increase in multigenerational living as our market is very diverse.
Women are a bit more likely to live in multigenerational conditions than are their male counterparts (12% vs. 10%, respectively).
Basic economics is also a factor in this trend, with more families opting to live together as prices have continued to skyrocket and affordability has become more of a challenge for would-be homebuyers.
Another recent development that may encourage multigenerational living are new state and city laws that make it easier for homeowners to add granny flats in Long Beach.
Bottom Line: Multigenerational households are making a comeback. While it is a shift from the more common nuclear home, these households might be the answer that many families are looking for as home prices continue to rise in response to a lack of housing inventory.