The multi-gen home will be a very popular choice for many. From cnbc.com – an excerpt:
Things have changed in the last few years, however, and a new trend has emerged. Rather than downsizing or right-sizing, retirees are starting to upsize. They are moving to bigger homes in their golden years.
According to a recent Merrill Lynch/Age Wave study of more than 3,600 respondents, 49% of retirees didn’t downsize in their last move, and 30% actually ended up moving into larger homes.
And they are doing it for all sorts of reasons — from finding a home that better suits them to buying a home with room for a live-in parent or visiting family members.
According to a recent Del Webb survey conducted among 50- to 60-year-olds, 22% are looking to move to bigger homes. The study also found that 43% want to remain in their existing home or move to a new location with comparable space.
This change marks the first time such a significant majority of retirees have gone against real estate norms.
Let’s take a look at the reasons behind this culture shift and the financial considerations that come into play if you intend to upsize your home.
Read full article here:
Link to CNBC Article
From the WSJ – thanks Sergio:
As a top Hollywood talent agent for over 40 years, Deborah Miller Lakoff represented big names like William Devane, Ned Beatty, Bob Uecker and Julio Iglesias. For proof, one could just look in her garage.
“There was a massive collection of stuff” stored there, says Fred Meyer, who is Ms. Miller Lakoff’s nephew. In addition to autographed memorabilia and keepsakes, there was furniture, books, records, clothes, family heirlooms, photos and formal dinnerware.
Last year, Ms. Miller Lakoff decided to move from her 2,300-square-foot home in Marina del Rey, Calif., to the 4,000-square-foot house in San Diego where her husband, Sanford Lakoff, lives. (Theirs had been a long-distance marriage for 10 years.) In the next few months, the couple plans to downsize again and move into a roughly 2,000-square-foot apartment in a retirement community. But before any of that could happen Ms. Miller Lakoff had to get rid of a lifetime of accumulated things and sell the house where she had lived for 35 years.
The first hurdle was to decide what items would make the trip to San Diego. Ms. Miller Lakoff and Mr. Meyer, her nephew, worked on that task together. “You need someone who can persuade you to get rid of a lot of stuff. Fred was that person,” Ms. Miller Lakoff says. She resold some of her clothes, record albums and books to second-hand shops, and donated much of her furniture to two young families that had just bought a home. Mr. Meyer digitized photographs and distributed many of his aunt’s heirlooms and keepsakes among family members. “Everybody was thrilled to see this stuff,” he says.
The second—and bigger—challenge was deciding what to do with everything else. For this, she called in reinforcements, hiring Greg Gunderson, president and owner of Gentle Transitions, a Manhattan Beach, Calif., company that specializes in helping people downsize and move.
Mr. Gunderson called in a number of dealers and collectors who purchased some of the high-value items, with all of the proceeds going to Ms. Miller Lakoff. Finally, Mr. Gunderson’s team also packed up everything and did a final “clean out” of the house so it would be ready for the next owner. The whole process took between 2½ and three months and cost $2,300, says Mr. Gunderson. He charges $75 an hour, adding that a typical move to a one- or two-bedroom apartment in a retirement community ranges from $3,000 to $6,000.
The daunting task of downsizing has led to an array of companies and services that promise to make the process easier. Much of the focus is on getting rid of things and coordinating the move. But the real service is persuading people to “let go” of items they’ve held on to for decades.
“There are ways to honor the memory of something without having the physical piece in front of you,” says Mary Kay Buysse, executive director of the National Association of Senior Move Managers, a trade organization with about 1,000 member companies.
When helping their 89-year-old mother downsize in Greenwich, Conn., David Borie and his sister, Mary Zara, turned to a Darien company called The Settler. Their mother, a retired artist and interior designer, had chosen the move-management company to help her deal with the contents of her 6,000-square-foot house and coordinate her relocation into a 2,000-square-foot apartment in a Stamford, Conn., retirement community. The company put color-coded stickers on items to designate their status—if they were going to be moved to the new apartment, given to a family member, sold, donated or thrown away.
Before any artwork was removed, Mr. Borie made giclée reproductions (high-quality prints made with an ink jet printer) of some of the pieces their mother had painted, along with a lesser-known portrait of George Washington by Gilbert Stuart. (Washington is a Borie family ancestor, a seventh great uncle.) He and his other three siblings each received the reproductions and also had the option to get a giclée print of a painting by another ancestor, Adolphe Borie.
The four siblings supported The Settler’s objectives, but to minimize any quibbles, the company listed all of their mother’s possessions on a spreadsheet and let the children rank them from 1 to 75. The Settler’s staffers used a draft system to ensure that items were distributed fairly.
“Nobody got everything they wanted, but we each got some things. And nobody felt someone else got the advantage,” Mr. Borie says. He declined to divulge what the The Settler was paid, but owner Pinny Randall says her company’s services typically range from $10,000 to $15,000.
There were some emotional moments throughout the process. Mr. Borie and his sister worked hard to ensure that their mother was comfortable with downsizing.
His recommendation: Start the process early, when things are less likely to get muddled. And children should be sensitive to psychological struggles when a parent is asked to let go of a lifetime of memories and leave a home they may have occupied for up to 50 years.
Still, once the job is done, many downsizers say they feel a sense of liberation and relief. “Cleaning your shelves and getting rid of things is just a wonderful thing to do,” says Sheri Koones, author of the recently published “Downsize: Living Large in a Small House.” Three years ago, Ms. Koones downsized from a 6,800-square-foot home in Greenwich, Conn., to a 1,700-square-foot home there and got rid of 90% of what she owned.
Link to WSJ article
Are you thinking of making one last move?
My best advice? Do it while you still can!
It is physically, mentally, and emotionally taxing to sell your long-time home – especially sorting through all your stuff/junk and throwing out the family heirlooms once your kids convince you they don’t want it.
In February, we will be doing a seminar called Downsizing in 2020 – The Last Move.
Stay tuned for more details!
We are moving less – is it because we won’t, or can’t?
WASHINGTON — Americans are moving at the lowest rate since the government started keeping track, according to Census Bureau data released on Wednesday, as deep changes in the economy and the housing market increasingly freeze Americans in place.
The United States has long been one of the most mobile countries in the developed world. In the 1950s, about one-fifth of the American population moved each year. When factories would close, workers would move to other parts of the country to find jobs in new ones. Young people flocked to cities and rapidly growing suburbs, where jobs were plentiful and rent was cheap.
“In 1957 you could move to a flophouse in New York just to try it out for a while,” said Tyler Cowen, a professor of economics at George Mason University and author of “The Complacent Class: The Self-Defeating Quest for the American Dream.” “That doesn’t exist any more.”
These days, rents in many larger cities have exploded, making it much harder for a young person seeking better opportunities to afford to move. And low-wage jobs, after adjusting for the local cost of living, pay about the same everywhere.
The result is a nation where people move far less than they used to: Just 9.8 percent of Americans moved in the year ending in March, according to the newly released data. That was the smallest share since the Census Bureau started tracking it in 1947, and the first time it had fallen below 10 percent, said William Frey, senior demographer at the Brookings Institution.
“I keep thinking, ‘This is the year we’ll see a bit of an uptick,’ and it just doesn’t happen,” Mr. Frey said. He noted that the share of Americans who move each year now is about half of what it was in the 1950s.
This website charts migration according to the IRS reports, based on incomes:
Folks from wealthier counties love to come here because the real estate prices look so attractive. We’re getting more affluent!
Twice as much money leaving San Diego is going just over the county line to Temecula, etc. than the other four counties combined.
Not surprising to hear that Las Vegas, Phoenix, Prescott, and Austin are the top out-of-state destinations!
Freddie Mac’ research finds that today’s seniors (persons born after 1931) are staying in their homes longer, and aging in place. While Millennials have historically low rates of homeownership, the rates among seniors are high relative to previous generations.
The company estimates that this trend accounts for about 1.6 million homes that have not been available for sale. This represents about one year’s typical supply of new construction and about half the 2.5 million units need to meet demand. This gap will increase the relative price of owning versus renting, making renting more attractive to younger generations but it also puts upward pressure on both house prices and rental rates.
The why of this trend can be explained by a few key factors; better health and higher levels of education. The economists say this pattern is likely to increase over time as improvements in health care and technology make aging in place easier. They cite as an example the ability to Skype with a doctor.
The research compared homeownership rates for seniors aged 67 to 85 in two different periods. The current crop of seniors, they call them the “Good Times” cohort, were born in some bad times between 1931 and 1941 but with the benefit of relatively good times through their lifetime. The “previous generations” combines the generation born before 1924 and the “children of the Depression” born between 1924 and 1930.
The aging in place trend becomes apparent right after members of the two cohorts reach 67. Between that age and 87 the homeownership rates dropped by 11.6 percent for previous generations but only 3.6 percent for the Good Times cohort.
To reach their estimate of how many housing units have been held off the market by recent cohorts of senior citizens, the economists engaged in a thought experiment and evaluated a “counterfactual.” What would have happened if the Good Times cohort had behaved like prior generations? Since the diversion between the two cohorts begins at age 67.4, they used the pattern of the previous generations to develop a scenario to answer that question.
These estimates suggest that had the Good Times cohort transitioned as previous generations did, there would have been around 1.1 million more housing units available by 2018.
Generations that came along after the Good Times cohort, the “War Babies” (1942-1947) and “Baby Boomers” (1948-1959) are also expected to stay in their homes at higher rates, and thus contribute even more to the number of houses held off the market. Similar calculations for those two groups lead to an estimate that an additional 550,000 homes were held off the market by these cohorts by 2018, as shown in Exhibit 3. The combined total of 1.6 million units is 2.1 percent of total owner-occupied housing units in the United States as of 2018.
Link to Article
The one big proponent of marijuana farming in Encinitas has pulled back that plan, and instead is proposing a re-zoning so he can build out an ‘agrihood’.
But there are people who don’t like that idea either – from the UT:
This should happen more often:
HOUSTON (FOX 26) – How often do you see your siblings and your extended family. One Houston man says most relatives don’t spend enough time together so do you know what he did? The story behind this mansion is just about as stunning as the home itself.
“I built this house for not just my immediate family but for my extended family including friends,” Reggie Van Lee said.
Reggie Van Lee was a performer in the Alvin Ailey Dance Company. He recently retired as an Executive Vice President at a Houston consulting firm. He moved out of his home in River Oaks after building this 20,000 square foot estate for himself, his three sisters and their families.
“This kitchen was designed for this house by my wife TJ,” Mark Szafarz said. He’s married to Reggie’s sister. “It’s fun. We each have our own spaces. So we can see each other as often as we want.”
That’s why the 59-year-old says he built this house so their family could make many memories together.
“As much as people say ‘oh that’s so nice of you to do this for your sisters.’ They have no idea the joy I get,” Van Lee said.
This is an increasing trend that has many effects on the overall market – both good and bad. From cnbc.com:
That’s exactly how it works for Jennifer Michaels and her mom.
“Sometimes, it’s a quick little, ‘Hey, honey how are you?’ and other times we’ll play a board game together out here, but I literally have gone three days without seeing her,” said Michaels.
Economics certainly plays into the multigenerational mindset, but there may be a cultural shift as well.
“The baby boomers were just very unique; they are really the only generation in history that would move out of the house as soon as they go out of high school or college,” said Burns.
Lucy Abbott likes the security in knowing that if she has a problem, help is just a hallway away, but that is more of an added benefit than a driver of her living situation.
Not only are retirees trying to downsize, but the kids are hanging around longer too. The excellent research by John Burns has put some numbers on the one obvious outcome – multi-generational living.
Percentages in the 40s and higher are more than a blip – the vast amount of downsizing and multi-gen households is a game-changer:
14% of all US households (16.5 million households!) now live multi-generationally, and the numbers continue to rise for three reasons:
A. Delaying marriage has increased the number of young adults living with parents.
B. Surging retirement has increased the number of retirees living with children.
C. Significant immigration from countries where multigenerational living is the norm has also helped boost the numbers.
Most of the US housing stock was not built for multigenerational living, providing a tremendous opportunity for home builders. According to our Consumer Insights survey of more than 20,000 new home shoppers, 44% would like to accommodate their elderly parents in their next home. Additionally, 42% of today’s shoppers plan on accommodating their 18+ older children in their next home.
This focus on providing housing to extended family or friends may also account for 65% of respondents desiring a bedroom with bath on the ground level and 24% wanting a suite with a kitchenette and small living area.
Click below for full article and designs: