The last quarter of 2018 is not good news for the real estate market in general. But one of the most hit sectors in the process is the housing affordability, which managed a huge hit and retreated for the fourth quarter in 2018. This means that with the current rates, an average homeowner now has to spend about 35% of their income when buying a home.
Married homeowners, on the other hand, found a solution to this problem. Alcynna Lloyd wrote an article in Housing Wire about more married homeowners that are seeking roommates to cut costs. Read the article below to learn more.
More Married Homeowners are Seeking Roommates to Cut Costs
More than 280,000 married American households live with a roommate
Image Courtesy of Housing Wire
As the cost of homeownership continues to price out many homebuyers, more and more Americans are looking for ways to cut costs.
In fact, new data from Trulia reveals that in 2018, nearly 4.2 million U.S. households lived with a roommate or boarder. Of these households, more than 280,000 belonged to married couples.
According to Trulia’s analysis, this rate has more than doubled since 1995, which is the earliest year for which this data was tracked.
“Among all married householders, 0.46% live with roommates, up from an historical average of 0.36%,” Trulia writes. “This increase is mostly driven by married homeowners, 0.34% of whom live with roommates, or nearly 40% higher than the historical average.”
To no surprise, Trulia notes markets exhibiting the highest rates of married couples with roommates tend to be concentrated on the West Coast.
“In housing markets with the highest rates of married couples living with roommates, including Honolulu and Orange County, the share is between four and five times the national rate,” Trulia writes. “And it’s probably no coincidence that the areas with the most married-with-roommate households are also fairly pricey.”
Notably, Trulia found that among the 100 largest metropolitan areas, areas with higher home prices tend to have higher rates of married couples living with roommates. See full post here…
With the current housing affordability rate not favoring the poor and the middle class, married homeowners definitely found ways to cut costs by sharing it to roommates. Trends like this will continue as long as home ownership cost continues to price out homebuyers. Chrissy Callahan also published this trend in her article MSN.com, and there are other reasons why married couples resulted in this scheme.
Married Couples are Living With Roommates More Than Ever Before — Here’s Why
Image Courtesy of Getty Images
More married couples are forging their way into wedded bliss with a roommate in tow, according to a survey by Trulia.
Economists at the home and neighborhood site recently explored the growing housing trend and discovered that an increasing number of married couples are now taking on a roommate.
“While reasons can vary, the rate of married couples living with roommates has doubled since 1995 largely because it now costs more to own or rent a home. Married couples often take on a roommate to help the individual lighten his or her housing cost burden, or to defray their own housing costs. The two reasons are not mutually exclusive, and the data suggest that in recent years they were both relevant,” Trulia’s chief economist, Issi Romem, told TODAY Home.
In 2018 alone, 3.28 percent of all U.S. households (nearly 4.2 million households) shared their home with a roommate or boarder.Married folks in particular represented 0.46 percent (just over 280,000 married households) of that total, but are worth noting because the number of married couples living with roommates is up from a historical average of 0.36 percent.
The cohabitation trend is most prevalent on the West Coast, with Honolulu, Orange County, California, and San Francisco leading the charge. The reason? A pricey real estate market, where every $100,000 increase in the median metro home value equals out to a 0.25 percent increase in the number of married couples living with roommates.
“Housing markets on the West Coast are some of the most expensive and least affordable in the country. In fact, of the top 10 markets with the highest share of married couples with roommates, nine of them were located on the West Coast. As a result, these markets see higher rates than other markets of individuals and married couples that are challenged by the cost of housing, including some who resort to the married-plus-roommate scenario,” Romem said. Learn more here…
There are areas in the country where home prices are the most expensive and least affordable. As a result of this sudden surge in prices and affordability, we would likely see higher rates than other markets of individuals and married couples for they are challenged by the cost of housing.
We might have seen the housing affordability rates being magnified in the last quarter of 2018, but this was actually the trend in the last 10 years. Aly J. Yale published an article in Forbes.com about the rates of housing affordability hitting the lowest point in 10 years, making home buying almost out of reach.
Housing Affordability Hits Lowest Point In 10 Years; Here’s Where Buying A Home Is Most Out Of Reach
Image Courtesy of Forbes.com
Though home price growth has slowed in recent months, it appears any celebrations may be too early. A new report shows housing affordability has now hit a 10-year low. Last quarter, U.S. homes dropped to their least affordable point since 2008.
According to the Home Affordability Report from ATTOM Data Solutions, nearly 16% of Americans live in a county where buying a median-priced home requires an annual salary of $100,000 or more. In total, median-priced homes in 344 out of 440 counties were unaffordable last quarter, at least by historical standards.
Here are the least affordable U.S. counties to buy a home in, according to the report:
Perhaps this trend of dropping housing affordability rate will continue if no actions from the government to change this trend, allowing more people to avoid home buying in the next years. Until then, home buying is only a privilege for the rich.
If you plan on selling your house fast, this is actually a perfect opportunity where a lot of people are finding good housing deals. Dependable Homebuyers can help you sell your house fast and easy. Visit us on https://www.dependablehomebuyers.com to get started.
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