Unfortunately the standard norms for young adults have changed over the years. In the past, when the job market and the economy were in good standing, young adults were eager to move out and be on their own. The timeline usually went like this: college – first “real world” job – moving out. However, in 2015 with today’s unsteady job market and economy it’s harder for that timeline to be realistic. Many recent college grads, also known as “Millennials” (or ages 25-34) have accepted moving home after college as “the new normal”. So first, in order to solve this problem, we must understand why it’s happening.
Facts About WHY Young Adults Are Moving Home
Here are some facts and statistics about why young adults moving home after college is becoming “the new normal”:
- These kids/young adults are also referred to as “boomerang kids” according to com.
- 14% of Millennials have moved home with their parents.
- 78% of that are happy with this decision.
- 77% are still optimistic about their futures.
- Homeownership for Millennials was 36.25 in 2014, down from 2005’s historic high of 43.1%.
- Multi-generational households has shown steady growth in the past 5 years and is at the highest its been since the 1950s.
- Main Factors that contribute to Millennials moving home include – unsteady job market, high cost of living, college debt & more
- Though the unemployment rate is declining, 87% if Millennials are still unemployed according to com.
- 1/3 of young adults have gone back to school because of the poor job market.
- 34% have put off marriage, parenthood, or both because they are unable to find a good job.
Tips on HOW to Get Young Adults Into Their Own Home
Now that we have a better understanding as to why young adults are moving home, here are some tips on how to encourage them to get out on their own and enter the real estate market!
- Start Collecting Rent
This may seem harsh, but it’s the best way to get your boomerang kid motivated. After all, according to today.com, a recent survey suggests this is a popular tactic because 48% of these boomerang kids have paid rent to their parents. 89% have even assisted their parents with household expenses. It’s important to be strict about collecting this monthly payment so that your kids learn the value of budgeting their finances. Hopefully they’ll realize that if they have to pay rent at home, they might as well do it at their own place. If you’re really feeling guilty about doing this, save all of their rent payments and return it to them when they move out!
- Be Strict
As previously mentioned, it’s important to be strict with your new tenant. For example, give them rules and curfews like; “no parties, no loud music, no guests after 10:00PM” according to time.com. These strict rules along with making them pay rent, will hopefully make them realize they’ll have more independence and freedom on their own, even though other landlords are likely to have similar rules.
- Set Deadlines
College grads still might not be motivated to move even with strict rules and rent payments. (Maybe they enjoy the free laundry or free home-cooked meals.) You need to let them know that this won’t last forever. If they need to save some money or find a better job, set a date at which they need to do this by. Then once they are secure in those areas, set another date to which they are obligated to move. Otherwise they may get too comfortable and never want to leave!
- Get Organized
While it’s important to be strict and stick to deadlines, it’s also important to still help them with the process. Some recent college grads may not have money or job issues, but may just be overwhelmed by the moving process. As somebody whose likely moved a few times, you have the experience to help them through it. Calm them down and help them get organized. This is also a great way for them to clean out what they want to keep and what they plan to get rid of. Help them with their shopping on the necessities they’ll need right away, and things that can wait until down the line.
- Assist with the Down Payment
If money is the issue that’s keeping your boomerang kid from moving out, why not offer them a hefty graduation present? Typically, 20% is required for a down payment for a home in today’s market place. Since 50% of millennials were already planning on asking their parents for help on this, you might as well offer it up as a graduation present or an incentive for them to move. Even better, why not purchase a duplex or triplex and rent it out. This way your Millennial has their own place and the rent from them plus a roommate or two will cover the cost of the ownership!
Hopefully now that you know the why and the how to help your boomerang kid, they can get back on their feet! If you’re interested in helping them find a home, feel free to browse our featured listings. Once you’ve found them their own place, if you’re looking to downsize your own home, don’t hesitate to list your home for sale with the number one team at Century 21 Frontier Realty – The Jim Dolanch Team!
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