One-third of prospective buyers have moved in with parents or other family to help save money to buy a home this year
SANTA CLARA, Calif., Oct. 10, 2023 /PRNewswire/ -- With fall buying season upon us, would-be homebuyers facing affordability challenges may be turning their parents and extended family into co-buyers or roommates to find a place they can all call home, according to a recent survey from Realtor.com® and Censuswide. Recent return-to-office requirements and high childcare costs may also be driving home shoppers to factor family proximity and support into their purchasing plans, the research shows.
Of those surveyed who are planning to buy a home within the next 12 months, half (51%) are potentially looking to their parents to help them prepare for buying a home, with nearly one third (29%) saying they've already moved in with their parents to help save money in preparation for buying a home and another quarter (22%) saying they would consider doing so.
Similarly, one third (32%) of respondents are even cohabitating with other family members to help save enough money to buy a home, including siblings, aunts and uncles, and cousins, and another 24% would consider doing so.
Hoping to be close to family to share childcare and reduce expenses
In addition to the short-term savings that living with family provides, many are planning to stay close to family even after they've saved up by purchasing a home nearby their relatives. Twenty-eight percent of respondents who are planning to buy a home in the next year are doing so in part to be closer to their family.
Of those who are planning to buy a home to be close to family, many are motivated by financial reasons and sharing the cost and responsibilities of childcare. Helping care for other children in the family was cited as a top reason by that group (50%), followed by needing affordable help caring for their own children (44%). Other top cited reasons for buying near family were because they liked the area, prices/cost of living have become too high where they currently live, or health issues.
While many would-be buyers are looking to buy a home near their family, many respondents already call their family neighbors, with about 4 in 10 surveyed consumers saying their parents, siblings, extended family or grandparents have purchased a home near them.
Co-buying and living with family longer-term
As housing affordability continues to be a barrier for many would-be buyers, co-living or co-buying with family has gained significant popularity in recent years. Eighty-three percent of those surveyed would consider buying a home to live in together, as a primary residence, with someone other than their spouse/partner, including an extended family member or friend. Respondents were most open to buying a home with their child (37%), a romantic partner they're not married or engaged to (31%); a sibling, cousin or other family member from the same generation (27%), and their parents or in-laws (23%).
Realtor.com®'s collaboration tools make it easy for shoppers buying a home together and let you invite your home search partner to link Realtor.com® accounts and begin sharing your home search in one easy place across all devices, including comments back and forth that only the two of you can see.
"The challenging market conditions this year are changing buyer behavior in significant ways, driving many more people to explore alternative living situations they may not have considered in the past," said Danielle Hale, Chief Economist at Realtor.com. "Mortgage rates hovering at or near 7% have eroded buyers' purchasing power at a time when the consistently low number of homes for sale has kept housing markets surprisingly competitive."
For those who would consider buying a home with someone other than their spouse, top reasons cited included that pooled resources would afford them a better location (43%), a more updated home (41%), and/or a bigger home (38%). One-third (36%) of those who said that they would buy a home with someone other than their spouse said it was because they're already living together and would prefer to buy and start building equity sooner, and 29% said it's because they can't afford to buy a home on their own.
"While home buyers have long received financial assistance from family members to help them afford a home purchase – especially first-time home buyers who may not have already built up equity – we're seeing more and more prospective buyers take this a step further," said Clare Trapasso, executive news editor at Realtor.com®. "Faced with ongoing housing affordability issues and rising childcare costs, we're seeing parents and children becoming roommates again in later years as the 'kids' save up to purchase their own place, siblings moving near each other to pool childcare resources, and some even buying homes with family to split the financial burden and make homeownership a reality."
Survey Methodology
The research was conducted by Censuswide, with 2,291 respondents in the U.S. The fieldwork took place May 12-19, 2023. Censuswide abides by and employs members of the Market Research Society which is based on the ESOMAR principles.
About Realtor.com®
Realtor.com® is an open real estate marketplace built for everyone. Realtor.com® pioneered the world of digital real estate more than 25 years ago. Today, through its website and mobile apps, Realtor.com® is a trusted guide for consumers, empowering more people to find their way home by breaking down barriers, helping them make the right connections, and creating confidence through expert insights and guidance. For professionals, Realtor.com® is a trusted partner for business growth, offering consumer connections and branding solutions that help them succeed in today's on-demand world. Realtor.com® is operated by News Corp [Nasdaq: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc. For more information, visit Realtor.com®.
Media contact:press@realtor.com
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SOURCE Realtor.com
