Those of you that have read my posts know that I have had a pretty major change in my Family Living Dynamics when my son and his family moved in with me. Without going into a lot of detail, this change, I believe, may be taking place more and more across the United States as more families reach out to help each other. We could be undergoing a major cultural change because of this. Family Living Dynamics could be the next major paradigm shift in the way we do business in the Real Estate industry. This shift is one that I haven’t seen addressed by others, although I may have missed it.

There have been several news articles about people losing jobs and moving back home or graduating from college and not finding the high paying job expected and moving back home. One of them I ran across called this phenomenon, “Boomerang Kids.” In an article in the Washington Post, had this information:

The recession, loss of jobs and homes, high cost of living and growing debt are forcing adults to turn back to their parents for financial help. These so-called boomerang kids are the latest change in the ever-shifting landscape of the American family. “In some ways, we’re coming back and living together the way we did during the Depression,” said Amy Goyer, family relationship expert and senior vice president of outreach at Grandparents.com, an online community for grandparents.

 

So, my question has to do with what will this mean to the Real Estate market as we know it? Will people be looking for larger homes as they grow older and their extended families move back in with them? This will be a shift from older people down sizing after their children move out. Will we in the mortgage business be looking at more applicants on a single loan than we were before? Will starter homes continue to be the driving force on the Real Estate market as we go forward or will homes with a “mother-in-law” apartment be what people are searching for? It isn’t just kids moving back in with their parents, in some cases, the parents are moving in with the kids especially as “baby boomers” age, another thing I have personal knowledge of.

Kipplinger had five lessons for Boomerang Parents, read those here. Although an interesting article, it doesn’t address one of the major things happening right now, that of complete families moving back in with the parents. Most of the articles I have read have to do with single children or a single parent moving back with the parents. What I am seeing is an increase of complete families joining households to withstand the pressures of the current recession.

If this means someone going to school for retraining, or the ability of a grandparent to watch the children thereby saving on child care expenses while one of the family takes a lower paying or part time job, these changes in family living dynamic will have an effect on our Real Estate market. It could mean an increase in the purchase of multi unit properties, like duplexes. I don’t know what the future Real Estate market holds, but I am certain that it will include change.

As a mortgage professional, I will continue to keep my knowledge up to date on what is happening in today’s market place. That means that I want to have to right product for the people I am helping. Does that mean that a 5/1 ARM might be the right thing for someone that knows their current circumstances are temporary? Maybe, however, be sure you are checking with a mortgage professional that will work with your circumstances and recommend options. One of those options might mean waiting until the timing is right. If you have questions about your circumstances and your options, contact me today at 541-342-7576/541-221-3455 cell or e-mail me.