The Rise of the Multigenerational Household and Its Effect on the Real Estate Market
According to the Pew Research Center, multigenerational households have become increasingly common in recent years. This trend, driven by economic, social, and cultural factors, is reshaping the real estate market in ways that investors, developers, and homeowners need to understand. Read below to find out more about the rise of multigenerational living and its impact on the real estate industry.
The Boom of Multigenerational Households
The number of Americans living in multigenerational households has increased significantly over the last decade. In 2009, around 17% of the population lived in homes with two or more adult generations, or with grandparents living with grandchildren. By 2019, that figure had risen to 20%. This trend is largely driven by economic factors such as rising housing costs and student debt, as well as cultural and social trends like an aging population and increased immigration from cultures where multigenerational living is prevalent.
How Multigenerational Living is Changing the Housing Market
The rise of multigenerational households is leading to a shift in the types of properties in demand. Homes with multiple master suites, larger kitchens, spacious living areas, and adaptable spaces that can be used by different family members at different times are becoming increasingly desirable. Developers are beginning to take notice, with many now offering specially designed multigenerational homes.
The Implications for Real Estate Investors
For real estate investors, the rise of multigenerational living presents both challenges and opportunities. On one hand, the demand for traditional single-family homes could decrease, potentially leading to lower property values. On the other hand, properties suitable for multigenerational living may see increased demand and higher prices. Investors who are able to anticipate these trends could stand to profit significantly.
The Future of Multigenerational Living and Real Estate
Looking ahead, it is likely that the trend towards multigenerational living will continue to grow. As the population ages and housing costs continue to rise, more and more families will turn to this living arrangement as a practical and economical solution. This will continue to drive changes in the real estate market, with an increasing demand for properties that can accommodate multigenerational households.
Useful Tips and Facts:
- Multigenerational households have risen from 17% to 20% in a decade.
- Economic factors like rising housing costs and student debt are significant drivers of this trend.
- Homes with multiple master suites, larger kitchens, and adaptable spaces are becoming increasingly desirable.
- Real estate investors need to anticipate these trends to profit from them.
In Conclusion
The rise of multigenerational households is a significant trend that is reshaping the real estate market. As this trend continues to grow, it will lead to changes in the types of properties in demand, presenting new opportunities for developers and investors. By understanding and adapting to these changes, those in the real estate industry can position themselves for success in the coming years.