One out of five millennials, born between 1981 and 1996, live at home with their parents. This was recently reported by The National Association of Home Builders, in their 2016 study, “Missing Young Adult Households.” Compared to the year 2000, this is a 12 percent increase.
With housing prices on the rise, many millennials are feeling the squeeze. Buried in student debt, along with stagnant wages, millennials are having difficulties in purchasing their first home. In order to save and get ahead, millennials are migrating back to their parents’ home.
To put things into perspective, rent for a single-family home in Honolulu increased 15 percent to $2,675/month, in the 4th quarter of 2015. For sales, the median price (April 2016) for a single-family home on Oahu was $725,000.
Known has the “Great Delay”, millennials are purchasing homes later in life than their parents. And when millennials do purchase, most of them will need financial assistance, like receiving a gift fund for their down payment. Interestingly, in certain parts of the country, millennials are purchasing with their parents, as a joint owner.
Moving back home isn’t an easy decision. Depending on your parents and the living conditions, you could be exchanging your freedom and privacy for the ability to save more money.
What’s more important to you?
Disclaimer: This is a personal blog. Ryan Oda (#RS-75450) is a licensed real estate salesperson with Benn Pacific Group, Inc (#RB-19423). The opinions expressed here represent my own and not those of Benn Pacific Group, Inc., its agents, and or its affiliates. My thoughts and opinions can change over time. This blog is intended to provide a semi-permanent snapshot of a selection of various thoughts and opinions that may not be the same, or even similar, to those I may hold today.
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