Home-cooked meals and free rent are arguably the best perks of living with parents. However, for a person between the ages of 25 to 34, this isn’t usually socially-acceptable. People in this age range are usually expected to be living independently. After all, living with parents can feel suffocating at times and it’s nice to have some distance from your parents. Despite all of this, today, many millennials around this age are actually opting to live at home with their parents, instead of getting their own place.
In 2000, the percentage of people in this age range who still lived at their parent’s home was about 15.3%. In 2016, this number increased to 26.3%. Why would this be the case, especially when our economy is strong?
Even though most millennials are employed, it doesn’t mean that they can afford the rising costs of homes on the market today. To illustrate, in 2008 the median price for a home cost roughly $232,100. As of 2017, that price has jumped to $323,100. Combined with the debt that they owe for student loans, it has become very challenging for millennials to afford a home at the moment.
Delaying & Saving
While the housing market remains extremely expensive, millennials are delaying their plans to purchase a home so that they can save up money. Since parents usually won’t charge much or anything at all for their child to live at home, this provides an excellent opportunity for one to build up their home purchase fund.
Determination Is Still There
Studies have shown that millennials are still very much interested in purchasing a home, and are willing to even sacrifice their retirement fund or career ambitions. In one specific study of millennials between the ages of 21 and 34, they found that 42% are currently homeowners. However, 68% of these homeowners wish they had waited longer because they were not properly prepared for all the expenses associated with buying a home. After considering this, living at home doesn’t seem like a bad idea—at least until housing costs decrease.
Lakeside Title Is Here to Serve You!
Lakeside Title provides title insurance and numerous title-related services, all while making sure your transactions and funds are protected and secure. Our processes streamline residential and commercial real estate transactions for lenders, realtors, buyers and sellers. To learn more, give us a call at 410-992-1070. We look forward to the chance to serve you!