Large Amounts of Prospective Home Buyers are Moving Back in With Their Parents While They Save

New buyers are facing affordability challenges while shopping for homes. Some adults have resulted in moving back home with their parents while they save up.

Realtor.com’s executive news editor, Clare Trapasso, stated that new home buyers have historically been given assistance by family members when buying a new house, but recently, prospective buyers have been taking this “a step further.”

Fox Business reported, “Research reveals that 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. Nearly one-third (29%) say they’ve already moved in with their parents to help save money in preparation for buying a home and another quarter (22%) say they would consider doing so,” per a survey from Realtor.com and Censuswide.

So, what specific challenges are driving this trend? The rising price of rent and inflation have reduced the savings potential of prospective homebuyers over the last few years. Potential buyers are saving an estimated $20,000 a year while living with their parents, according to Realtor.com economic research analyst, Hannah Jones.