Will Multigenerational Living Soon Be The Norm Here In New Jersey?
Have you ever thought about how much income you'll bring in per month here in the Garden State once you retire?
Sure, we all do our best to save for once we've reached that point where we're on a fixed income, but let's be serious: nobody knows how much they'll actually need to survive by that time until the moment finally comes. The market is forever changing, so even the best forecasting models are never one hundred percent accurate.
So, how do you know what you'll need to bring in monthly here in New Jersey once you decide your working days are done? The bottom line is - you won't. You won't know until the few years before you plan to retire. That's why it's important to save and invest as much as you can while you're still working.
Now, that plan's worked for people over the last eighty years. However, I predict that for those born in the 90s and younger, even that's not going to be enough. It's definitely not going to be enough for those who plan to live in New Jersey for the rest of their lives. Who knows what the property taxes will be 40 years from now. They're super expensive now, and with salaries not increasing high enough or often enough to keep up with the cost of living increases, things could get pretty rough for people 35 and younger later in life if they choose to stay here.
Another thing to consider is how are young people supposed to afford to help out their aging parents if they can barely save enough to take care of themselves?
The answer? Well, if you really think about it, there's only one: multigenerational housing. You've probably heard the term before when used to describe European compounds. It's extremely common for families in other countries to live with parents and extended family forever. It's not crazy to think that, pretty soon, it could be the norm here in the states, more specifically NJ, before too long.
One of the biggest expenses people struggle with the most here in the Garden State is the cost of living. How do you offset that? Well, you split up the bills as much as you can. Therefore, there's a good chance you'll see people buying their parents' homes in a, sort-of, living equitable division of the assets, kind of deal in an effort to offset expenses. It would be a win-win situation. Parents would stay in the home they've known for years while their adult children live there with their own families. The parents have permanent (and free) caregivers while the adult children don't have to pay these insane mortgage prices.
It makes sense right? Truth be told, I, personally, think this is happening already now more than ever before.
Only time will tell, though.