Statistics show that many households in the country are now becoming "multi-generational homes," with family members preferring to stay in the nest instead of purchasing new houses. In a video report by CNBC's Diana Olick, she stated that as much as 14 percent of all U.S. households, or 16.5 million, are adopting this living arrangement.
Moreover, in a study conducted by John Burns Real Estate Consulting, it shows that out of 20,000 potential homebuyers, 44 percent said they are willing to accommodate their elderly parents. Likewise, 42 percent of older respondents are willing to live with their adult children.
Interestingly, economics is not the primary reason for this growing trend. Lucy Abbott from Seattle, now in her 70s, still live with her daughter and teenaged grandchildren though she insists that they can all afford to live separately.
"Grandparents like me are more active, you know, we do more things, we are healthier, we live longer, so the relationships with grown-up children can mature, and I think that has something to do with it," she said.
CNBC breaks down this trend into three reasons:
Recession
The recent financial crisis resulted to unemployment in young adults, who needed to stay with their parents while in between jobs. This also made them delay marriage and starting their own families.
Immigrants
Influx of immigrants is another factor. Asians and Hispanics in particular are known for their close-knit family cultures, where multi-generational living is a norm. Slowly, this culture may be influencing how Americans think about their way of living.
Aging Baby Boomers
"The baby boomers were just very unique; they are really the only generation in history that would move out of the house as soon as they go out of high school or college," said real estate expert John Burns noted.
Now, these baby boomers are retiring and consequently, downsizing. While some choose to live in adult communities, a significant amount choose to move in with their adult children.
This trend poses a great opportunity for homebuilders, as most existing homes are not designed to accommodate large families in varying age gaps. Ideally, multi-generational families such as Abbott's require separate entrances for grandparents and children and separate living quarters with separate kitchens and bathrooms.
Abbott moved into a "NextGen" home built by Lennar, a Miami-based construction group. The company reported a dramatic growth in sales for this particular model.
"I think the builders figured out there was a huge opportunity here that they had missed, and Lennar was a real leader in this a few years ago, designing for these types of households," Burns concluded.
