Nearly half of all millennials are looking to ease financial and emotional pressures by living closer to their parents.
Millennials are finding it hard to save money for a down payment on a home. As rents rise, and student debt eats into savings they are choosing to live closer to home. Therefore, getting a leg up on entering the real estate market.
Both parents work full-time in nearly half of all U.S. homes. Forty-two percent of mothers in the United States contribute to household earnings.
Millennials are depending on parents to take a bite out of their living expenses. Parents are helping with child care and providing emotional support in tough economic times.
For young families with 2 working parents and small children, childcare is often the single-largest expense at 28% of the family’s monthly budget, according to Connecticut United Way. For a family of 4, child care can take a big bite out of the budget. This can make paying a mortgage impossible. And, there are limited evening or weekend childcare options for parents working a non-traditional work week.
Child care payments can represent a buyer’s purchasing power.
Living with family close by creates a support network that living away from family doesn’t provide. A strong network of supportive family and friends helps with mental well-being. Having family near helps create healthy families, both emotionally and financially, creating opportunity to enter the housing market.