Hopeful Homebuyers Turn Relatives into Roommates to Save Money – Realtor.com News

Many of today’s buyers are feeling fatigued by dwindling home options, high prices, and elevated mortgage rates. As a result, some are willing to consider alternative approaches to homeownership, including letting family in on the deal. According to a survey from Realtor.com and Censuswide, would-be buyers facing affordability challenges may turn to their parents and other family members to secure a place to call home. Similarly, proximity to family is a leading factor in choosing a place to live as nearby relatives can help relieve childcare costs. 
Out of more than 700 respondents planning to buy a home in the next year, 29% have already moved in with their parents to save some money, and another 22% would consider doing so. It isn’t the first time that moving-in with family has been contemplated as a way to fast-track homeownership. Perhaps unsurprisingly, younger respondents were more likely to consider moving in with their parents. Roughly a third of respondents have moved in with other family members and another 24% would consider doing so. An even larger proportion (62%) have or would consider moving into a smaller rental unit or moving to a less desirable neighborhood to save some cash for a home purchase.
The respondents looking to buy a home within the next year cited homeownership, more space and better access to the outdoors as the top reasons for their home search. More than a quarter of respondents said that proximity to family factored into their home search.

For home shoppers looking to move closer to family, roughly half cite giving help with childcare as a reason and 44% of respondents are looking for a move closer to family to receive help with childcare for their own children. In line with this familial pull, almost half of respondents said that siblings have purchased or considered purchasing a home to be nearby, and 46% say parents have done or considered doing the same.

Family is not only a factor in the where, but also in the how when it comes to purchasing a home. Roughly 37% of respondents would consider purchasing a home to live in with a child, 27% would consider doing so with a sibling or cousin from within the same generation, and 21% would consider doing so with a grandparent. Altogether, roughly 83% of respondents were willing to consider buying a home and living with family or friends.
Respondents who stated their willingness to co-buy a home with someone other than a spouse said they would consider doing so because it would enable them to pool resources and buy in a better area (43%) or purchase a more updated (41%) or larger (38%) home.
Even as the median listing price falls nationally year-over-year, still-high mortgage rates mean that the cost of homeownership is still more than 20% higher than one year ago, keeping the pressure on home shoppers. Creative solutions, such as turning to family for support, may seem like the most viable option to make a home purchase happen in the coming year. Sluggish seller activity remains a concern for the future of the market, keeping still-high prices afloat as buyer demand eats into for-sale inventory. However, buyers may find relief in the new construction sector as builders ramp up production to meet demand.
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