Two in 10 adults age 65 and older live in households that include at least two generations of adults who are over 25 years old, according to an analysis of 2015 American Community Survey data by the Joint Center for Housing Studies of Harvard University.
Of this group, which numbers roughly 9.4 million, two-thirds live in households with two adult generations — parents (them) and children 25 years of age and older. The remainder live in households with three or more generations — grandparents (them), adult children and grandchildren. Adults in their late 20s and in their late 50s and older are the most likely to live in a multigenerational household.
- Twenty-five percent of older adults who are black, Hispanic or Asian and were born in the U.S. live in multigenerational homes compared to 15% of non-Hispanic whites also born here. The figure is higher — 45% and 20%, respectively — for individuals born outside of the U.S.
The number of Americans age 65 and older is expected to grow by 30 million from 2015 to a headcount of nearly 80 million in 2035, according to the U.S. Census Bureau and noted in the JCHS report. Within that figure, the number of adults 85 and older is expected to double during the period.
This growth is expected to present opportunities for homebuilders and remodelers as members of this group look to downsize from their current residence or adapt their home to help accommodate mobility changes.
This window of opportunity is reflected in the latest National Association of Home Builders' 55+ Housing Market Index, which nudged up eight points to a reading of 67 from the third to the fourth quarter of 2016. Of specific interest is creating home product options within the single-family attached or detached categories that cater to this group with smaller plans, lower-maintenance features and ready access to amenities.
Last month, Canadian developer Minto Communities announced that it will partner with Margaritaville Holdings to develop active adult communities nationwide inspired by the music of Jimmy Buffett. Features of the first project in the line — the Latitude Margaritaville mixed-use development in Daytona Beach, FL — include up to 6,900 homes, a resort pool, indoor and outdoor dining options, a fitness center and beach access.
Meanwhile, homebuilder D.R. Horton is rolling out its Freedom Homes single-family brand, which it launched this past summer, marketed toward the 55-plus segment.
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