Adult Children Choose to Live With Parents Due to Lack of Affordable Housing
The 2019 Home Buyer and Seller Generation Trends study conducted by the National Association of Realtors (NAR) shows that millennials overall remain the largest generation of buyers. The report also found that older millennials who bought a multi-generational home were most likely to do so in order to take care of aging parents, or to spend more time with those parents.
Here are just some of the highlights of the study:
- Millennials as a whole accounted for 37 percent of all buyers, making them the most active generation of buyers for the sixth consecutive year.
- Student loan debt remains a barrier to homeownership
- A majority of buyers and sellers work with a real estate agent, regardless of age.
- 52% of Gen Xers who purchased a multi-generational home did so because adult children moved back home or never left
Lawrence Yun, the NAR’s chief economist also stated the following:
“The high cost of rent and lack of affordable housing inventory is sending adult children back to their parents’ homes either out of necessity or an attempt to save money. While these multi-generational homes may not be what a majority of Americans expect out of homeownership, this method allows younger potential buyers the opportunity to gain their financial footing and transition into homeownership. In fact, younger millennials are the most likely to move directly out of their parents’ homes into homeownership, circumventing renting altogether.”
While high student debt remains a problem not just for the housing market but for the economy as a whole, will first-time buyer programs sweetened by lower mortgage rates and rising hourly earnings be enough to attract a large number of millennials to start buying homes this year?
Buying a condo or a townhome might be a more practical option for many first-time buyers. Here’s a small list of townhouses and condos for sale in Cerritos and other parts of Southern California: