More People Doubling Up in Housing

By E-Renter Tenant Screening
Posted on September 13, 2011 under Housing Trends, Rental Market | Read the First Comment

According to the U.S. Census Bureau, there has been a big jump from 2007 in the number of individuals and families doubling up in housing. The definition of “doubled-up” households are those that include at least one person over age 18 who is not in school, not the householder, and not a spouse or partner of the householder.

The Census Bureau says 69.2 million, or 30%, of adults were doubled-up in 2010, compared to 61.7 million adults, or 27.7% in 2007. Total American households who have doubled up due to unemployment or underemployment stands at 18.3%.

Much of the increase comes from people aged 25 – 34, living with their parents. That number increased from 4.7 million before the recession to 5.9 million (14.2% of the age group) in 2010.

The study was done as part of the Census Bureau’s wider report on income, poverty and health insurance. The report shows that household incomes dropped sharply last year. Since 2007, they have fallen 6.4%. Not surprisingly, the number of people living in poverty rose sharply, up for the fourth year in a row to 46.2 million people, or 15.1%.

If counted separately, some 45% of the young adults who live with their parents would fall below the poverty threshold. Because an entire household’s income is counted when determining poverty status, the group has an official poverty rate of only 8.4%.

What does the Census Bureau data mean for landlords?

• Fewer households mean lower demand for rental housing.
• Americans have less income to spend on housing and other necessities.
• Fewer home sales will continue to drag the housing market down.
• Once the economy starts to improve, many of the families and adult children will move out on their own, spurring a strong demand for housing.

Now, if only the economy would start to improve!