In our last blog post, we talked about how there are many millennials to choose back home because of the rising cost of rent. We also talked about how many parents are living with their kids because of the high cost of assisted living. These two things accomplish one thing, saving money.
In a recently article by Money CNN, they talk about other ways housing is becoming a luxury. Some people actually opt to share housing with others, such as roommates. When you think of roommates you think of college students all cramped all together in one small apartment. Well, even though this scenario may be a little exaggerated it may not be too far from the truth. Some people do think ahead and get a larger apartment or home so they can accommodate a roommate and provide some privacy to their new housemate. This allows to offset the cost of a mortgage to a lower rate.
The article explains that in 2012 there was 32% of people in the U.S. are living with another adult other than a partner or spouse. That is a third of the population living with a roommate. The article continues to talk about the actual economics of it all, rent keeps going up but paychecks are just not keeping up. Two adults living together typically have lower income and sharing a space allows them to afford a better living situation than the one they would have living alone.
So how does this affect you as a buyer? Well, if you are single or are not living with your spouse or partner you may want to consider purchasing a place that is big enough to accommodate a roommate. This will be financially beneficial to you and will allow you purchase a bigger place while not really having your mortgage go up but instead you may be saving some money every month.
There are plenty of eligible people who need a living situation that is affordable and most people do prefer to live in a house as opposed to a small apartment. People looking to rent a room in a house will also offset some of the monthly costs such as cable, water, electricity etc.
On a sweeter note, people who don’t have a partner can benefit from the companionship from having someone else in the house as opposed to living by yourself.
WandaFears, Realtor ABR CRS GRI WCR
Richmond, Va. Long and Foster Realtors