the new (old) american family multigenerational living in the 21 st century john l. graham the paul...
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THE NEW (OLD) AMERICAN FAMILY
Multigenerational Living in the 21st Century
John L. Graham The Paul Merage School of Business University of California, Irvine [949-856-1969/[email protected]]
What’s Happening?
Economic Crisis?
LATimes (10-30-11)
Problem Definition Is KeyGreedDebtGovernment regulationGovernment deregulationSub-prime mortgagesExecutive incentivesEfficient markets theoryEternal business cyclesThe ChineseThe GreeksAdam Smith
Alan GreenspanBen Bernanke*Henry Paulsen*Bill ClintonGeorge W. Bush*Christopher Cox*Tim GiethnerBarack Obama*Harvard*You (according to H. Cain)Adolph Hitler
What’s Happening?
Economic Crisis?
Foreseeable Demographic Disaster?
U.S. Population 65+ (millions)
0
10
20
30
40
50
60
70
80
1960 1980 2000 2020 2040
Associated Concerns
• Failing pension systems
• Coming failure of Social Security
• A housing stock that doesn’t fit consumers’ needs (2006…)
• Rising healthcare costs
• A national experiment gone awry
Median Square Feet in New Single-Family Houses
0
500
1000
1500
2000
2500
1973 1978 1983 1988 1993 1998 2003 2008
Median Number of Rooms in Existing Single-Family Houses
4
4.2
4.4
4.6
4.8
5
5.2
5.4
5.6
1940 1950 1960 1970 1980 1990 2000 2010
Disabilities of 65+ Population (circa 2005)
With any disability Vision or hearing
Walking/using stairs
Other physical tasks
Activities of daily living
Mental
51.821.3
38.1
24.9
12.5
11.4
Percentage of 65+ Year-old Widows Living Alone
(Sources: McGarry & Schoeni (1998) and U.S. Census
0
10
20
30
40
50
60
70
1940 1950 1960 1970 1980 1990 2000 2010
What’s Happening?
Economic Crisis?
Foreseeable Demographic Disaster?
A Welcome Cultural Shift…
Circa 2011 in America• More than 20 million 18-34 year-olds live with their
parents
Percentage of 18-34 Year-olds Living in Parents’ Houses
0
5
10
15
20
25
30
1960 1970 1980 1990 2000 2010
Circa 2011 in America• More than 20 million 18-34 year-olds live with their
parents
• More than 50 million Americans live in
more than 7 million multigenerational households
Percentage of Multigenerational Households (AARP analysis of U.S. Census data)
0
1
2
3
4
5
6
7
2000 2002 2004 2006 2008 2010
Circa 2011 in America• More than 20 million 18-34 year-olds live with their
parents (spring training!)
• More than 50 million Americans live in more than 7 million multigenerational households
• Both numbers have been growing fast
• A return to reliance on the extended family, that is, a cultural shift
Book Topics • Deciding to live together• Financial and emotional benefits• Financial and legal planning• Proximity and privacy• Remodeling home for adult children or parents• Making co-habitation agreements
Over a dozen different types of housing options:
• Accessory apartments - attached or detached
• Duplexes
• Adjacent houses
• Townhouses
• Family compounds• Condos
Accessory Apartments
• Granny/sonny flats
• In-law units
• Second units
• Garage conversions
• Cottages
“Lately, we work to deliver the elevator shaft as a possibility for a conversion down the road with removable floor plates…and stacked closets on the first and second floors.”
Director of Architecture, Pulte Homes
in “Blueprint for a New American Home”
Wall Street Journal, 11-2-11
Universal Design Is Crucial in 21st Century
• The current housing stock in America is inadequate for the baby-boomer generation
• Basic issue – room for a wheelchair
• For builders
• For re-modelers
Daunting Obstacles
Four cultural curses and a blessing• The missing – ter – • “I”• Sameness• Wide-open spaces (1/3rd estimate)• Immigration
Laws that favor your Grand Prix
over your Grandparents
Occupants per Household around the World in 2010
5.2 India
4.8 Philippines
4.3 Vietnam
3.8 Mexico
3.4 China
Source: Euromonitor
2.6 Spain
2.6 USA
2.5 Japan
2.3 UK
2.0 Germany
In 2020, when baby boomers are forced back into the homes and care of their kids, everyone may see it as a positive thing… the best kind of family reunion.
Bill: My wife and I enjoyed a few short years of three-generational living in a two-flat house in Chicago. We occupied the first floor. Our daughter and husband and our two grandchildren lived above us. We sat around the same dinner table every night. Those were the happiest, richest, and most rewarding years of our lives.
Resources
• Elder care• Family communication books• Household aids/products for seniors• Organizations for seniors• Remodeling• www.AllintheFamilyBook.Us, latest literature,
videos, curriculum design, this power-point• www.GU.org, the Generations United
website/organization posts important new information on the topic in a most timely manner
the following slides can be inserted into the presentation as you wish
Family Meeting and/or Contract Topics
• Length of stay
• Communication
• Finances
• Shared responsibilities
• Childcare
• Family fun
U.S. Population 65+(percentages)
02468101214161820
1960 1980 2000 2020 2040
Numbers of Multigenerational Households by Type in 2010
Householder with parent 25,000 & grandchild…with parent, child 68,000 & grandchild…with grandchild 1,100,000…with parent & child 1,200,000…with parent 2,200,000…with child & grandchild 2,500,000
