A recent survey of more than 300,000 Millenniums found that 79 percent wanted to rent. Yet, the current savings rate for this generation indicates that it will take 10 more years before they will have the 20 percent down payment needed to qualify. Until then they will remain renters or living with relatives.
Current data and recent surveys indicate that as the millennial generation becomes older, most of them are embracing the American dream of homeownership. Up to 79 percent plan to ultimately purchase a house or apartment. Another 15 percent are unsure about future housing plans. Only 6 percent plan to always rent. Still, at current savings rates, the millennial homeownership rate will likely remain depressed for years to come.
However, the trend of sharing housing costs with others is growing. Especially in the expensive metropolitan cities.
Already serving major markets including New York City, Austin, San Francisco, Los Angeles, Philadelphia, Washington D.C. and Baltimore, Roomi is now expanding into the Boston market.
Roomi, a free mobile-first platform says it is transforming the rental and shared housing industry. Prior to expanding into the Boston market, Roomi has already been downloaded nearly 300,000 times to help people find the perfect housemates and living spaces. Roomi's iOS app, Android app, and desktop experience are designed for those seeking to rent out empty rooms as well as those searching for a new home. The platform lets users create a profile and search for shared living accommodations, housemates, and rooms simply and quickly. Every listing is vetted and verified by a dedicated security specialist before going live in the app's secure database.
Focusing on extensive research, Roomi developed its mobile marketplace to help solve these urban living challenges: steadily rising rent, stagnant wages, and the lack of simple ways to find affordable housing. Roomi curates the best rooms and services for people seeking flexible, affordable shared living solutions.
Boston is unique as nearly 70% of local housing units are occupied by renters, reflecting the need for a flexible yet secure way for them to find homes as well as housemates within the city. Many in the millennial generation seeking to live in greater Boston find they can only do so by doubling or tripling up with others to afford soaring rental prices. According to the most recent Greater Boston Housing Report, more than a quarter of renters now spend more than half their income on rent alone, up from 18 percent in 2000.
“With a large and growing undergraduate, graduate, and young working population in Boston, [it is] in need of rental housing, the high demand for rental units is driving up prices, making solo living a non-option for many renters, especially those between 18-34,” said Ajay Yadav, CEO and Founder of Roomi. “Shared living is becoming a desired option not for only millennials, but also people of varying ages who seek shared living situations for a range of reasons, from affordability to the desire for community. Roomi helps people find the best shared living situation, in every situation.”
Sharing living expenses with others is a major way that millennials can increase their savings rate to become better positioned to make a home purchase sooner.
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Author bio: Brian Kline has been investing in real estate for more than 35 years and writing about real estate investing for ten years. He also draws upon 37 plus years of business experience including 12 years as a manager at Boeing Aircraft Company. Brian currently lives at Lake Cushman, Washington. A vacation destination, a few short miles from a national forest. In the Olympic Mountains with the Pacific Ocean a couple of miles in the opposite direction.