Young people are saving for the first installment
ROSEVILLE, Calif. — New data shows that young adults who live at home with their parents are willing to buy. This age group, 25 to 34, has saved enough while staying with their family to move out independently.
During the pandemic, a record number of young people have gone home. Now it looks like they are ready to go out. According to the National Association of Realtors, 15.6 percent of adults ages 25 to 34 live at home with their families. This is down from 2020 when 17.8 percent were reported to be living at home. Looking at Census Bureau information, the historical percentage of 25 to 34 adults living at home is less than 10 percent.
High rents, remote work
In recent years, high rents and the opportunity to work remotely have prompted many young people to return home. Moving home allowed these young men to improve their financial situation. This may have allowed them to save, pay off debt, and improve credit score and debt-to-income ratio.
Rents have also risen by double digits, jumping 14% from 2021 to 2022, which could prompt more young people to move directly from their parents’ homes into their own. According to NAR, the share of first-time buyers who have moved directly out of a family member’s home has grown significantly, reaching 27% in 2022 compared to 15% in 1995.
Home living may not be ideal for many people, but if potential first-time buyers can move in before they buy, it could help them save up for a home. Additionally, the added flexibility of homestay living allows the buyer to navigate a tight housing market with limited inventory at affordable prices.
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jolly gallon
If you or someone you know is considering purchasing, please feel free to contact me Magnum One Realty Office in Roseville at (916) 899-6571 and email at [email protected].
We specialize in catering to buyers and sellers of homes in the Roseville and Sacramento area including Sacramento, Placer, El Dorado, Sutter and Yuba counties.
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