It is often said that the American demographics are rapidly changing, and with that come the shifting demands for homes. According to the latest ValueInsured Modern Homebuyer Survey, a disproportionate number of next-generation modern homebuyers are planning to buy homes for a non-traditional, non-nuclear family household.
Traditionally, Americans have bought homes for nuclear families and increasingly, for single-parent households and child-less households. However, as more non-traditional buyers join the housing market, more Americans are also planning to buy multi-generational family homes.
Conducted in June 2016, the study found that 9% of all Americans surveyed plan to buy their next home for a multi-generational household, which comprises family members across more than 2 generations, and/or with extended family beyond the traditional parent and children composition. Considerably higher numbers – as much as 66% more – of non-traditional homebuyers in unique segments plan to live in multi-generational households:
- 15% Millennials plan to buy their next home for a multi-generational household
- 15% of respondents who self-identify as new/recent immigrants plan the same
- 13% of respondents who self-identify as Hispanic/Latinos plan the same
Millennials’ desire to live with their parents even after they start their own family may not be an unexpected surprise. According to at least one study, over 50% Millennials consider their parents their best friends. It is also well-documented that Millennials have relied heavily on their parents on housing and financial support well into adulthood.
Home sellers, real estate and mortgage professionals should take note of the demands of these next-gen homebuyers. Not only are these buyers a growing segment, they are also planning to spend more on their next home:
- 64% of all respondents who plan to buy a multi-generational home plan to spend at least $250,000 on their next home, compared to 46% of all respondents.
- 61% Millennials plan to spend at least $250,000 on their next home
- 71% new immigrants plan to spend at least $250,000 on their next home
- New immigrants plan to spend an average $738,000 on their next home, vs. all respondent average of $442,000. This could be at least partly due to new immigrants’ higher propensity to live in top urban cities with higher home prices.