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MortgagePoint » Your Trusted Source for Mortgage Banking and Servicing News 68 J O U R N A L July 2023 Market Trends HOW MANY AMERICANS ARE LIVING IN MULTIGENERATIONAL HOMES? A new Rocket Mortgage analysis shows that in the last five decades, the number of Americans living with multiple generations under one roof has quadrupled, according to the Pew Research Center. More than 59 million people live in multigenerational households or homes that include two or more adult generations. Whether it's parents and adult children or a "skipped generation" consisting of grandpar- ents and their grandchildren, these homes offer a unique dynamic that can be both rewarding and challenging. Most Multigenerational Homes Today Are Made Up of Parents and Adult Chil- dren When asked about the familial makeup of the people in their homes, respondents said parents and adult children were the most common familial roles represented. Those who participated in the survey were able to choose multiple answers, revealing an interesting trend in the data. Adults living in a multigenerational home may identify with multiple familial roles, like adult child and sibling. While many family members may take on the responsibility of multiple familial roles, everyone plays an important part in living communally. Of those surveyed, 60.9% identified their primary role as a parent or parental figure, and 35.6% identified as an adult child. Just 3.5% of those surveyed identified their main role as a grandparent or grandparental figure. On average, multigenerational homes consist of about four people. As you can imagine, the age range within these house- holds can be quite diverse, with an average age gap of almost 40 years between the oldest and youngest members. Often, as many as four generations live together in one home. Many individuals surveyed have been living in multigenerational homes for a significant portion of their lives, with 31.7% of respondents reporting a lifelong experience in this type of living situation. It's evident that multigenerational living is not limited to any particular age group but encompasses indi- viduals from various stages of adulthood. Almost Half of Multigenerational Homes Today Are Driven by Financial Need and Benefit Those who participated in the survey were able to choose up to three answers when asked why they live in a multigenera- tional home. The following are the top three reasons from respondents. Some 48.8% said home affordability and saving money were their main concerns when choosing where and how to live. Roughly 31.2 % of those surveyed said they wanted to spend more time with family. An estimated 27.9% said providing care for older family members was a significant factor. Of the 48.8% who said financial reasons were the main reason for multigenerational living, housing costs were the predominant concern. Some 40.2% of those respondents attributed their decision to share a home with family to either: the expensive hous- ing market in their area (21.6%) or the need for multiple incomes to afford their home (18.6%). Meanwhile, 33.9% said saving money is too difficult without the additional support of multiple incomes supporting the household. Interestingly, only 5.2% of those surveyed cited the reduced cost of older adult care as a primary factor, and just 2.5% cited childcare as their main motivation (7.7% in total). Living in a Multigenerational Home Can Come With Challenges Living in a multigenerational home has its advantages and challenges, like any other type of housing situation. If you're new to sharing your living space with multiple people under one roof, communication will be key to finding common ground and living in relative peace—pun intended. While those in a multigenerational living situation did find benefits of doing so, some 56.5% of survey respondents said they would prefer to live alone in their own home or with their immediate family only if given the choice. When it comes to challenges, 26.4% of respondents said privacy concerns are com- mon. Additionally, 19.9% chose differences in opinions and beliefs as their primary frustra- tion when living in a large family home. To manage privacy and personal space in daily life, 47.6% of those surveyed emphasized the importance of respecting each other's privacy.