- AARP - http://blog.aarp.org -
The Takeaway: Rise Of Multigenerational Living Means Less New Households
Posted By Elizabeth Nolan Brown On May 1, 2012 @ 8:44 am In Bulletin Today | No Comments
According to the Pew Research Center, more than one-fifth of adults ages 25 to 34 live with their parents or in other “multigenerational” arrangements, the highest level since the 1950s. You’ve probably heard enough stories about this trend by now to know it doesn’t just reflect a renewed interest in family bonding; these “boomerang children” are mostly moving back in with mom and dad (or grandma and grandpa) because of unemployment and economic hardship. In fact, the recession reduced the rate at which Americans set up new households by at least half, the Washington Post reports
This rise of multigenerational households-and correlated drop in new households-has ramifications beyond the personal. An estimated 2 million fewer homes are occupied than would have been had Americans continued to set up new homes and apartments at pre-recession rates. That’s a lot less people buying homes, paying rent, using utilities, buying home goods, etc. It’s a slowdown that has “broad implications for the economy,” the Post notes.
Housing has led the United States out of most of the recessions experienced since 1960, but if that vital industry is to significantly strengthen the current recovery, Americans are going to have to find their own homes at a more vigorous pace.
Although the number of new households began to recover in 2011, growth rate continues to lag behind its historic pace, according to Census Bureau statistics.
“It is hard to see what’s going to turn this around without better job and income growth,” said Daniel McCue, research manager at Harvard University’s Joint Center for Housing Studies. “But the way the job market is going, I don’t see any [immediate] change.”
Tuesday Quick Hits:
Photo: David Sacks/Getty Images
Article printed from AARP: http://blog.aarp.org
URL to article: http://blog.aarp.org/2012/05/01/rise-in-multigenerational-living-decline-in-new-households/
Copyright © 2013 AARP. All rights reserved.