There’s a fascinating dichotomy in today’s crop of homebuyers: They have fewer young children but are increasingly part of intergenerational households.
If such trends continue, it could have a significant impact on everything from where new neighborhoods are built to what amenities are included in homes, even to what furnishings are popular.
Last year, the percentage of homebuyers who had children under 18 living in the home fell to a historic low of 27%, according to the latest Profile of Home Buyers and Sellers from the National Association of Realtors. The annual report, released in November, offers an overview of people who purchased and sold a home in the past year.
That 27% is down from a high of 58% in 1985. Broken down by buyer type, “for first-time buyers, 36% had children under 18, and for repeat buyers, 24% had children under 18,” according to the report. The shift is due to declining birth rates and also perhaps to people having children later in life, when they are less likely to move house as frequently, the association posits.
At the same time, the percentage of homebuyers living in multigenerational households hit an all-time high of 17%, the report finds. Those households, the report says, may include an older relative, adult children or “families of other compositions.”
“As housing affordability is increasingly difficult, pooling incomes to purchase a larger home and split household expenses assists homebuyers in achieving homeownership,” according to the association. “This may also be a way for families to approach caregiving for young children with an extra set of hands or elder care for relatives.”
What could these trends mean long-term? For a start, the reduction in the percentage of homebuyers with young children likely means less worry about finding homes and neighborhoods near schools, playgrounds and parks — and more interest in homes with smaller yards and fewer play spaces.
Alone, that shift could also lead to smaller homes with fewer bedrooms. But that’s where declining birth rates are in tension with the growth in multigenerational households. If there’s a good chance your adult child will return home, you’ll be glad you have their childhood bedroom still available. (I wrote recently about the concept of “excess bedrooms” and how interior designers can help reimagine the traditional bedroom for homeowners.)
Overarchingly, what these two trends say to me is that adaptability will be a driving force in home, interior and furnishings design going forward. For instance, many homebuyers will still want homes near good schools, but they also may be looking for proximity to health care facilities and senior centers.
Homeowners living with family members or others outside their immediate family may be looking for interior features that provide a measure of privacy, perhaps soundproof bedrooms or amenities like minifridges and beverage/snack bars in bedrooms to prevent middle-of-the-night trips to common kitchens.
We may see more interest in creating “mother-in-law” spaces, either within the main home or adjacent to it that could serve an older child, an older relative or other types of people sharing the home, whether temporarily or for longer periods of time.
My neighbor turned a detached garage into a divided space for her live-in nanny and for her elderly father, who lived there for a short time. When her children no longer need the nanny, those spaces could become an office for my neighbor or her wife or could be used as entertainment and gathering spaces for the kids.
Such adaptable space design can require equally adaptable furniture. Think motion furniture that kids (and adults!) love for gaming or movie watching but that includes lift and tilt features that help mobility-impaired folks get in and out of a chair more easily.
Demographic reports aren’t as sexy as project reveals or new product introductions, but the evolution of households will shape everything architects, interior designers and the home furnishings industry will do for years to come.
