'Shared' households grow in popularity

Recession byproduct: Households with at least 1 'additional adult' increased by 11.7% from 2007 to 2010.

By Tony at MSN Real Estate Jun 22, 2012 8:41AM

Throwing a random person into a typical home environment used to be solely the purview of sitcom creators. As in: "Take normal American family. Insert prim butler. Or robot. Or Alf."

 

According to the Census Bureau, however, that conceit is the new normal for more folks, since the Great Recession. Between 2007 — just after the housing boom — and 2010, households with at least one "additional" adult increased by 11.7%. These living arrangements now comprise 18.7% of all households, according to the new Census report "Sharing a Household: Household Composition and Economic Well-Being: 2007–2010" (PDF).

 

The census defines shared households as those including one nonstudent over 18 who is not the householder or the spouse or same-sex partner of anyone in the home.

 

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These could include arrangements such as living with a roommate or roommates, having an older parent or relative move in, or allowing an adult child to come back home.

 

Already, the census has reported that the poor economy of recent years has spurred more people to cohabitate in these ways, often to offset the high cost of homeownership and rent, in relation to salaries and savings.

"Our analysis suggests that adults and families coped with challenging economic circumstances over the course of the recession by joining households or combining households with other individuals or families,” Laryssa Mykyta, a Census Bureau analyst and report author, said in a press release.

 

Adult children moving in with their parents comprise perhaps the largest subgroup in this trend. This spring, the Pew Research Center reported that 29% of parents with adult children said their kids had moved back home recently. More than 60% of adults ages 25 to 34 also said they had a friend who had done the same, according to the report.

In fact, there are now more of these multigenerational households than at any time since the 1950s, the Washington Post says.

 

Certainly, this trend may change the dynamic of dinner conversations. But it also underscores the shift in the housing market — and the one that may prolong traditional recovery. If fewer households form — another recession-era trend that has only recently abated — that means fewer people are buying homes in which to house them. And if more young adults are choosing their childhood bedroom over their first monthly mortgage payments, that further depletes the buyer pool.

Yesterday, the National Association of Realtors reported that first-time homebuyers accounted for 34% of existing-home sales in May, a share that has slipped in the past year.

 

But are these shared households really saving money by sitting out of the real-estate game, to an extent? In some ways, yes: The Pew survey reports that 77% of young adults living with parents say they "have enough money now to lead the kind of life they want or expect they will in the future." And the census says that fewer leaders of shared households live below the poverty level than other householders. That said, 45.9% of shared households' other members had incomes below the poverty line in 2010.

 

— Tony Stasiek is a producer/editor at MSN Real Estate.

 

7Comments
Aug 18, 2012 7:34PM
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YA thanks to mom and dad i am able to live at home after losing my job, my woman of ten years and the house.Had to send all my inheritance to the FN Irs after my real mom died.... over 350000 thousand dollars was looking to buy a house to live in but had to pay the FN Irs. What now still not working now after 2 years..OH i forgot my health went to **** also! all this happened from 2008 till now!Can anyone help?? Want my own house and property to live the rest of my life in Free??Cant work any more due to health issues ..Help Me !!
Aug 18, 2012 4:36PM
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Sigy:                                             RIGHT ON TARGET MR.. JONES
    : I owe 20 acres of very rural land with a private well and highway frontage.  and a chance to get a very reasonable priced mobile home, but the Los Angeles County zoning laws will not allow  single wide mobile homes on private property as a Granny Unit,
           So here I am a 80 year old handicapped live alone senior with a small social security pension income being forced to occupy a 2 500 sq home; trying to find a few LIVE IN  room mates to share the cost of maintaining this country home located on a peach orchard near Los Angeles.  
             This is the supposed  country of the FREE and the home of the BRAVE?????????? HELP!!!!
My E- Mail is: windyflat@yhoo.com

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Moving back in with parents or taking on a roommate must really suck. My hypothesis is that just because it's happening more frequently doesn't mean it's popular in the sense that people like it. I am so happy to just have my own space. My nephew is a lawyer in Atlanta and the only way he affords his home is to rent out the bottom floor and live on the second floor. So he's basicallly sharing his home too. If the housing market was free then you could buy a home as easily and cheaply as you buy a car. I went from paying $3,720/yr in lot rent to a mobile home park to paying $662/yr in property taxes once I was allowed to place my singlewide mobile home on a residential lot outside the mobile home park. So make this legal everywhere and just about everyone can have their own space. It's about being free to live in a home of your own choosing as in your right to life, liberty and the pursuit of happiness. All politicians take an oath to protect and defend this right (our constitution). I'm not against zoning one area as agricultural and another area as commercial. But once you zone an area as residential and I can afford to buy a residential lot then I'd like the freedom to live on that residential lot in a home of my own choosing. Isn't it time we took back our country America?
Aug 18, 2012 6:26AM
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WTF i 'm doin it also sharing a large home with 2  roomates of different backrounds but it works for some reason cuz were all different it works out better.
Aug 18, 2012 6:13AM
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They used to be called Rooming houses.

Be careful if you live in a HOA or an area with strong code enforcement.   "Single Family Homes"  do not allow members outside the family to live in them by regulation or local law.

I know many divorced people who do this to keep the house.
Aug 18, 2012 6:11AM
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Im glad my kids have their own place.
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About Teresa Mears

Teresa Mears

Teresa Mears is a veteran journalist who has been interested in houses since her father took her to tax auctions to carry the cash at age 10. A former editor of The Miami Herald's Home & Design section, she lives in South Florida where, in addition to writing about real estate, she publishes Miami on the Cheap to help her neighbors adjust to the loss of 60% of their property value.

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