From a Mike Shedlock (“Mish”) blog post which you really ought to read in full:
Multigenerational Families
- 3.7% in 2000
- 4.0% in 2010
- 5.6% in 2012
There was only a gain of .3% in the 10 years between 2000 and 2010, but a gain of 1.6% in the next two years.
That small 1.6% increase represents a decrease in demand of 1.216 million homes.
However, those survey results are for three generations and thus do not include all the kids graduating from college, with no job, and moving back home.
In other words, housing demand has been suppressed by this action, and the estimate above (1.2 million) is ON THE LOW END.
The post included data and this graphic -
- but there’s MORE to think about here.
- – - – -
EleBlog take:
There’s another aspect of this: All of those who’ve moved back in with Mom, and the others who have graduated from college and moved back home, are — probably — generating EXCESS demand for goods & services.
In other words: If they’re not saving money hand-over-fist (as the result of living at home) — which is what we hear — then these live-ins are spending more money than they otherwise would if they had their own place (rented or owned), paid their own bills, did their own laundry, and stocked their own refrigerators . . .
That’s DEBATABLE; it’s the EleBlog’s thinking on the matter. If we’re right, however, it means what we see in terms of Gross Demand right now — with quarterly increases in national GDP at very low levels –
…might be a mirage, and might be unsustainable. Think about that!
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