In Hard Times, Generations Triple Up in One House

The Wall Street Journal

May 1, 2009

In California's Inland Empire, there are neighborhoods filled with vacant homes - some of them abandoned foreclosure houses and others vacant properties waiting to be rented. 

"The question is: Where have all the people gone?" said Chuck Whitehead, a real estate agent in that southeastern area of the state. 

From what he can tell, many people are moving back with family - often their parents - while they get their finances in order, from the 40-year-old recovering from a foreclosure to the 30-year-old saving up the down payment to help him buy his first home. 

But it's not only "boomerang" kids returning to the nest and creating bigger households. On the other end of the age spectrum, some older Americans lost a good deal of their nest eggs due to the fall of the stock market - funds intended to pay for their everyday expenses or assisted living. Some of them are moving in with family too. 

What can result is a household with members who span three generations. 

According to a recent survey by AARP Bulletin, 11% of people between the ages of 35 and 44 said they live with parents or in-laws. Eleven percent of those 50 or older said they live with their grandchildren or their parents. 

Fifteen percent of those surveyed said it was likely that they may need to move in with family or friends, or have family or friends move in with them. Of those, 34% said that a loss in income would drive them to that move, 19% said it would be due to a change in job status and 8% said it would be due to foreclosure. 

"We haven't had a housing ownership crisis like this," said Jim Toedtman, vice president and editor of AARP Bulletin, referring to the foreclosure crisis that has left many families scrambling to find a place to live. "People are having to realign, or put rooms into use that haven't been used," he said. Old bedrooms that were offices are returning to their original purpose, and some attics are getting new life. 

Pent-up Demand Or Here To Stay? 

Household formation certainly has stalled over the last several years, said Jim Gillespie, president and chief executive officer of Coldwell Banker Real Estate. The culprit today may be a difficult economy, but a couple of years ago, escalating home prices kept some young Americans from buying a home, he said. 

In his view, that means there is a lot of pent-up housing demand. "Kids don't want to live with their parents, and parents don't want to live with their kids." 

But others point out that the decision for a few generations to live under one roof isn't always about money. 

"The White House is now a multigenerational household," said Donna Butts, executive director of Generations United, an organization that promotes intergenerational strategies, programs and public policies. Michelle Obama's mother, Marian Robinson, moved into the White House after helping with the children, Malia and Sasha, during the presidential campaign. 

With grandparents in the house, children get a strong sense of their family's culture, Butts said. If they're able to help out with younger children, parents benefit from the extra hands and grandparents often have a stronger sense of purpose, she added. 

In 2000, there were 3.9 million family households, or 3.7% of all households, that were considered multigenerational, or households consisting of more than two generations, according to a report from the U.S. Census Bureau. 

Multigenerational households are most common in areas where new immigrants live with their families, where high housing costs or housing shortages force families to live together, or places that have relatively high out-of-wedlock childbearing and unwed mothers live with their children in their parents' home. Updated data on multigenerational households is expected from the Census Bureau later this year. 

Some expect the new numbers to reflect an increase in multigenerational households, and for the trend to last even when the economy rebounds. 

"Given what you see in terms of the growing closeness of generations...I wouldn't be at all surprised to see it continue in at least a modest way," said Stephanie Coontz, director of research and public education for the Council on Contemporary Families. 

Beyond The Granny Flat 

Many home builders have offered "granny flats" as an option for a while. These can be separate apartments above a garage, where grandparents or possibly "boomerang" children can live. There has also been an emphasis on "universal home design" that allows homeowners to age in place, with accessible floor plans that could serve them well into their golden years, said Louis Tenenbaum, an independent living strategist based in Potomac, Md. 

The focus on addressing older family members in a home's design leads Mike Kephart, of Denver, Colo.-based Kephart Living, to believe the trend of multigenerational living could stick around for a while. 

"I don't think the economy has been the driver for anytime other than the last several months," he said. 

His firm builds accessory dwelling units called Sidekick Homes that often serve as grandparents' suites and are built adjacent to single-family homes. The units can range from 400 to 800 square feet, cost about $80,000 to $200,000, and allow an older family member to maintain some independence while living right next to their children and grandchildren, he said. The structures are completely accessible, with features including wooden floors that accommodate wheelchairs and windows that can easily open with a crank or a motor. 

But beyond the physical changes to the space, families need to be prepared for the emotional changes ahead if an elderly family member moves in - especially if that person needs some sort of care-giving assistance. If it's a long-term arrangement, it's often difficult to prepare completely for the years ahead. 

Andrew Hickman of Orting, Wash., has been living in a multigenerational household for about a decade now, after his mother-in-law moved in with his family due to a disability and economic concerns. He says his daughter has benefited from having her grandmother around to help her learn, but she has also had to watch her grandma slowly become frailer. 

His daughter was a baby when her grandmother moved in; now she's 11 years old. "She could walk, drive, could take my daughter places. Since then, she has gotten worse," he said. 

Boomerang Kids 

There are also some emotional considerations when younger adults move back home with their parents - especially if they're bringing their young children with them. 

Good communication is important to maintain, and it helps when everyone has their own places, whether they are bedrooms, sitting rooms or even corners of a room for individual activities, the AARP said in a list of tips for living in multigenerational households. And keep routines to help minimize disruptions. 

Finally, try to use the extra time together to strengthen family relationships, AARP recommends. For the echo boomers, that may not be too difficult a task. 

"[Echo boomers] are much more likely to see their parents as friends and people they would confide in than in previous generations," Coontz said. 

Boomers are known for praising their children's individuality and voicing support for their endeavors. As a result, they've generally become more than just traditional parents - they've become good friends to their kids, Coontz said. So when echo boomers need to move home, it might feel more comfortable for them than it would have for generations past. 

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