Troubling Economic News roommates are replacing new homes –New households are at a Record Low in Phoenix Arizona and in many parts of the country. So instead of buying a home millennial are getting roommates.
This explains a lot. There are a several reasons for a higher roommate rate including higher rents, stagnant incomes and a tight employment market .It also means fewer adults in the market to buy homes. This will directly effect the housing market. It would be the prime driver behind weak home sales these days. So this can have a spiraling effect on economy. This surely answers the question–why are the millennials not buying homes– they can’t afford to. The stagnant incomes and a tight employment market are changing the real estate market. YIKES!
One of every three adults in the Phoenix area is living with roommates or family, according to the Zillow real estate firm.
That is the highest doubling-up rate on record in Phoenix, and just above the 32 percent national rate for adults living in with roommates or family.
The rate is even higher in Los Angeles (48 percent) and Riverside, California (45 percent), and in New York (43 percent).
The roommate rate is up from before the recession and economic upheavals, according to the study by Zillow (Nasdaq: Z).
In 2000, the roommate rate was 25 percent nationally and 27 percent in Phoenix.
There are a several reasons for a higher roommate rate including higher rents, stagnant incomes and a tight employment market.It also means fewer adults in the market to buy homes.
“The rise in doubled-up households is a troubling sign of the times and starkly illustrates one of the prime drivers behind weak home sales these days,” said Zillow Chief Economist Stan Humphries.
Mike Sunnucks writes about residential and commercial real estate, government, law, sports business and workplace issues.