Wave Goodbye To The Two Car American Home

Imagine the typical American family.

Odds are you see a home with two kids and two or more cars.
That image is starting to fade away according to a new study from KPMG.

"We think that the two car family over time, it is not going to go down to zero, but a significant amount of people are going to reduce that number," said Gary Silberg, a KPMG Partner who conducted a study.

Right now, 57% of American households have two or more cars according to KPMG. That percentage has held relatively steady over the last couple of decades.
But Silberg forecasts the percentage of two car homes falling to 43% by 2040 thanks in part to the growing popularity of ride share companies.
"It is already happening right now, look at the number of Uber drivers and Lyft drivers and we think the shared economy is going to be the economy of the future certainly in automotive," said Silberg.

Automakers Changing World

The growing use of car-share companies and the fact many consumers are putting off the purchase of their first new car until they are a little older are two trends automakers are watching closely.
For decades, the industry has counted on hooking buyers when they are young and keeping them in the corporate family as they age and buy newer cars and trucks.
But in 2012 automotive research firm Polk estimated the average American would buy four fewer new vehicles in their lifetime compared to a similar study conducted before the recession.
What's changed are the demographics and economics driving American families to consider life with one car instead of two.

"The average price of a car is around $31,000. The minute you drive it off the lot you lose eleven percent," said Silberg."Owning a car is not the most rational economic decision."

Silberg believes it's possible the number of vehicles in the U.S. could start trending lower over the next twenty years as more families decide not to buy a second car.
That could have big implications for automakers.
And yet, auto executives believe it's too soon to declare the end of the two car family.
"It (the two car family) is still a big part of America, it is suburbia, going to work, going to school, it is going to be a big part of the future as well," said Joe Hinrichs, President of the Americas for Ford.

City Living Killing Car Ownership

Of all the trends pushing families away from owning more than one car, urbanization may be the least appreciated.
As metropolitan areas grow, so does congestion.
It's forcing families to decide it is easier to get around by using companies like Uber that offer mobility on demand.
"This trend is clear. More people are moving to cities and suburbs where congestion and costs will make them say they don't need two car," said Silberg.
While more than half the households in America currently have at least two cars, in some cities like New York and Chicago the percentage is far lower.

###

Photo: Joelle Sedlmeyer / Getty Images