The facts are in, and shared housing is on the rise. But is this a problem for the real estate industry, or an opportunity for smart buyers?
Everyone agrees that a big part of the American dream is to own your own home. If so, it must be considered a nightmare for people to have to get out of their own home and move in with friends or family due to financial considerations.
This summer, the Census Bureau released a surprising new report marking a significant rise in the number of adults who are sharing their homes with others, whether they are family members or friends. From 2007 to 2010, the number of Americans sharing a home rose 11.4% as many people are trying to reduce their living expenses.
More young Americans moved back home with parents
You may not be surprised to hear that many young adults were forced back into the homes of their parents between 2007 and 2010. In 2007, only 1.2 million Americans lived at home with their parents. This figure has jumped to an astounding 15.8 million people, the majority of which fall between the ages of 25 to 34 years old.
Housing crisis or opportunity?
Some housing experts are quick to point out the negative aspects of this study, such as the challenges associated with having more people sharing a home. These issues include:
- Lower levels of real estate activity
- Higher levels of real estate inventory
- Decreased demand for home improvement type services & contractors
While many people might see these as negative factors, savvy buyers may also see big opportunities. A few of the reasons include:
- More housing inventory means more competitive prices on homes
- Historically low mortgage interest rates available
- Low or no down payment programs still available
Put an end to shared housing – talk to NOLA Lending!
The mortgage professionals at NOLA Lending in Covington, LA (link to home page) take pride in providing individualized advice for each potential borrower tailored to their specific situation. And sometimes, it is necessary to advise a client to rent instead of buy.
But with today’s historically low interest rates, many potential homeowners are finding great prices on housing and simply can’t pass up this opportunity in the market to buy a home. Remember that lower housing prices combined with low interest rates make for a really attractive monthly mortgage note!
Also, many programs are still available for low or no down payment including many government programs like FHA, Rural Housing and VA. Most of St. Tammany Parish qualifies for Rural Housing programs so please ask us for details.
Before you simply read the news and assume you don’t have any options, talk to a loan officer today and find out if this trend in shared housing could maybe be the best opportunity you have to buy a new home!