"What is old ... is new again" I'm sure you have heard this saying many times.
A recent study released by the Pew Research Center proves it true. The American way of life is evolving once again ... and it's heading backwards. Multi-generational family households are staging a comeback.
At the turn of the century, the majority of households had adults 65 and older living with the younger members of their families. Social Security and Medicare came along and changed that drastically. Now, once again, we are experiencing a turnaround in those statistics.
According to the Pew study, in 2008, 49 million Americans lived in a home that contained at least two adult generations.
That is 16.1% of our total U.S. population.
Demographers tell us that this year could be the "tipping point" when the number of babies born to minorities outnumbers that of babies born to whites in the U.S.
The large amount of Latin American and Asian immigration started in the '70's is in large part responsible for the upsurge we are seeing and for the multi-generational households that are a result. Presently in America, minorities are much more likely to live in multi-generational dwellings than native-born Americans.
In my immediate area, there are cities and villages that are experiencing large growth primarily because of the influx of minorities. As examples:
NAPERVILLE, ILLINOIS - YEAR 2000 JOLIET, ILLINOIS - YEAR 2000
Total Population: 128,358 White Non-Hispanic 61.0%
Black or African-American: 3,887 Black 18.2%
Asian/Pacific Islander 12,404 Other Races 11.8%
Hispanic/Latino 4,160 Hispanic 18.4%
If the reports quoted above are true, the minority households will show a large growth in numbers in the next census. This in turn will be reflected in the types of housing needed for these families now and even more so in the ye
ars to come.
But minorities are not the only ones that see their family structure changing.
The present economic downturn has also greatly increased the numbers of non-minority Americans that are forced by monetary concerns to dwell in multi-generational homes. Utilizing the income from several generations has simply become necessary for survival.
For sales agents, lenders, and homebuilders, this is important to know and understand. The implications of these studies is clear. The housing and lending needs of the typical American family is changing and will be changing even more drastically in the future.
Will our industry make the adjustments? Will we be ready and prepared for these changes? Will we have made adjustments to the American-built home? Adjustments that will accommodate and lure these buyers? Will we see lending programs that fit these family's needs more beneficially?
"What is old ... is new again"
Gene Mundt, Sr. Vice President
Personal NMLS #216987
The Federal Savings Bank
1823 Centre Point Circle, Naperville, IL 60563
Now on Skype! 630-219-1316
