All Under One Roof

Poor economy sees a rise in multigenerational households.

More Americans are moving in with relatives to cut costs and manage tough times, says Pew, which calls multigenerational living “a financial lifeline” for many.

Hispanics lead the increase in the trend, followed by African-Americans, whites, then Asians, although Asians are most likely to live with family than any other group, overall. Between 2007 and 2009, Americans saw the greatest increase in multigenerational living ever, with an increase from 46.5 million to 51.4 million Americans living with family.

Although incomes tend to be lower in multigenerational households, poverty rates are also lower, says Pew. While the poverty rate in non-multigenerational homes hovers at 14.6 percent, the rate for homes with cross-generational family members is significantly lower at 11.5 percent, as of 2009. That same year, median income for multigenerational homes measured at $57, 533, while other homes saw a median income of $59, 002.

The greatest benefits of multigenerational living, research shows, come to those most affected by the Great Recession—the unemployed—as well as other economically vulnerable groups including young adults, Hispanics, and blacks.

The pros and cons of living with family vary, and as Tina B. Tessina, PhD, psychotherapist and author of It Ends With You: Grow Up and Out of Dysfunction, the benefits should be weighed against potential disadvantages.

While multigenerational living has been a time-honored tradition in some cultures—such as a the Latino community—and recent trends saw young women striking out to live on their own, Tessina says, “the money crunch” has changed living dynamics, “now that there is a money crunch, the new trend has lost ground to tradition.”

The top advantage of course, is economic. “It is cheaper to cook and do laundry, and also baby sitting is probably free—and there's no extra rent.”

There are emotional benefits as well. “Companionship, entertainment and support are readily available,” Tessina adds. “The older generation has life experience that benefits the younger generation.”

There is also an increased sense of security, she notes. “It is safer, because there are more people around to keep an eye on children, or discourage interlopers.”

Even the earth benefits, Tessina contends. “Generations can share vehicles, appliances and even clothing, which is not only cheaper, but ecologically better—it is not wasteful.”

Pitfalls to watch out for include the danger of complacency. “Younger generations may see this as an opportunity to slack off, not get a job and not pull their weight,” she maintains. “While they can benefit from the elders experience, the younger generation does not gain the confidence and common sense that comes from learning via risk-taking and experimentation.”

Sometimes, while there may be financial benefits to living with family, those may come at an emotional price.

“Family members may be dysfunctional, and it's difficult to remove yourself from dysfunction and improve your functionality when you're immersed in the old, familiar patterns,” Tessina explains.

Individuals struggling with their own issues may also find it a challenge to leave behind old, destructive patterns. “If a family member is agoraphobic, shy or insecure, staying at home might exacerbate these conditions and certainly will make it more difficult to get over them,” she says.