Adults Still Living With Their Parents

By
Real Estate Broker/Owner with Envelope Real Estate Brokerage Inc

A survey of potential first-time homebuyers found that 29 per cent between the ages of 21 and 34 are living with their parents while saving for their home down payment.

While it is no surprise that those under the age of 30 are staying home longer, whether to attend school or save for a home purchase, what is surprising is the number of adults in the 31 to 34 years old category who are also still at home!

The survey found a considerable gap between potential first-time buyers' expectations and their realities when it came to planning and saving to buy a home. "We found that, although most young people would like to purchase a home within the next few years, most do not have a practical plan to get there."

  According to the survey, adults between the ages 21 and 34, on average, have been saving for their down payment for only 1.6 years, yet expect to take only a total of 3.8 years to save enough to commit to a purchase.

The average reported savings rate (as a percentage of pre-tax income) of those who live at home with their parents, 16.6 per cent. Those who are currently renting, 11.0 per cent.

What amazes me is that both the U.S, and Canadian government have reduced or suspended first time buyer incentives or incentives with savings regarding down payments.

Mother Nature had it right in the bird kingdom, when you can fly, bye bye. With humans, she must have had a bad night!

Posted by

Ty Lacroix Broker of Record & Owner

          

'NOT ALL REALTORS* ARE THE SAME', One call or email to me and you will know why!

Your London and S/W Ontario source for results!

519-435-1600   www.enveloperealestate.com

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Topic:
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Rainmaker
83,011
Debbie Atwood
Real Estate Broker
Century 21 Real Estate Center Everett, WA

the stats are interesting and don't surprise me at all.  

August 31, 2010 09:07 PM
Rainmaker
118,460
Patsy Overton
Patsy Overton Interiors, Atlanta, Georgia

Unbelievable!  You would thinks the "kids" would do whatever possible to get out of there.  Love your pictures!

August 31, 2010 09:08 PM
Rainmaker
1,030,124
Endre Barath, Jr.
Realtor - Los Angeles Home Sales 310.486.1002
Berkshire Hathaway HomeServices

Ty what a sad statistic from an economic perspective. I see in my market parents giving their children large sums for the downpayment for a home rather then have them live at home.

August 31, 2010 09:13 PM
Rainmaker
261,278
Jack Mossman - The Nines Team in Stockton
The Nines Team at Keller Williams
The Nines Team At Keller Williams

Affordability and cultural issues create multi-generational markets as well.  In the central valley of California, visitors to new home centers have been asking for full dual suites; another favored request two bedroom wings on opposite sides of the home with common areas and a "guest" room in between.    We may also want to look at this in reverse .... parents living with their adult children!

August 31, 2010 09:21 PM
Rainmaker
333,351
Ty Lacroix
Envelope Real Estate Brokerage Inc

Debbie: Leaving the nest must be old fashioned!

Ty

August 31, 2010 09:36 PM
Rainmaker
333,351
Ty Lacroix
Envelope Real Estate Brokerage Inc

Patsy: I would think so, but a free ride, lazy or for a really good reason!

Ty

August 31, 2010 09:37 PM
Rainmaker
468,951
Teral McDowell
Plano Real Estate Solutions
Keller Williams Central

In my sphere, I see more parents living with children; most of those children are older than 34. These stats sure do help to explain why so many folks sat on the fence when offered the homebuyer tax credit.

August 31, 2010 09:37 PM
Rainmaker
333,351
Ty Lacroix
Envelope Real Estate Brokerage Inc

Endre: I see that as well and time will tell if that is a good move or not!

Ty

August 31, 2010 09:38 PM
Rainmaker
333,351
Ty Lacroix
Envelope Real Estate Brokerage Inc

Jack, I have written a few blogs about that as well. A sign of the times!

Ty

August 31, 2010 09:39 PM
Rainmaker
333,351
Ty Lacroix
Envelope Real Estate Brokerage Inc

Teral: And we will be seeing more of that in North America

Ty

August 31, 2010 09:40 PM
Rainmaker
951,133
Kathy Clulow
CNE - ASP - SRES .... Uxbridge Ontario Real Estate
RE/MAX All-Stars Realty Inc. Brokerage

Ty - It is amazing how many adult children still live at home ..... and not just single childless adults

Some live at home to look after aging parents ..... some for a short period as a result of financial hardship of one sort or another ..... and some simply because mom still cooks cleans and picks up after them and expects nothing in return.

September 01, 2010 07:22 AM
Anonymous #12
Anonymous
Anonymous

Hi Ty,

"Kids" want their first house to be what their parents have now or better, so until they can have it they won't go anywhere. They don't realize that their parents started in a very small house that needed work, with only one car (if any) and one small TV set.

I'm glad my daughter's more sensible than that. Right now she's living in a junior one-bedroom and is proud as punch of a space she can call hers and of the fact that she's doing it on her own.

September 01, 2010 09:04 AM
Rainmaker
447,863
Malcolm Johnston
Trenton Real Estate
Century 21 Lanthorn Real Estate LTD., Trenton, Ontario

I'm amazed at the 29% figure Ty. I can't really remember many of my friends living with their parents much beyond the age of 20. By that time everyone was raring to go.

September 01, 2010 10:02 AM
Rainmaker
548,032
Janice Ankrett
Burlington Ont. Accredited Staging Professional
Janice Ankrett Home Staging

Ty, I'm living it! LOL! I still have one adult child at home ;).

September 01, 2010 10:50 AM
Rainmaker
333,351
Ty Lacroix
Envelope Real Estate Brokerage Inc

Kathy, yes, there are many reasons why this is happening

Ty

September 01, 2010 12:24 PM
Rainmaker
333,351
Ty Lacroix
Envelope Real Estate Brokerage Inc

Pam: Yes so true and hence house poor and financial stress. Your daughter is wise, did she get that from her mother?

Ty

September 01, 2010 12:25 PM
Rainmaker
333,351
Ty Lacroix
Envelope Real Estate Brokerage Inc

Malcolm, the survey surprised the Bank of Montreal as well as they commissioned it!

Ty

September 01, 2010 12:27 PM
Rainmaker
333,351
Ty Lacroix
Envelope Real Estate Brokerage Inc

Janice, is it your cooking or the price is right? lol

Ty

September 01, 2010 12:28 PM
Anonymous #19
Anonymous
Anonymous

Hi Ty,

As I've answered her many times, "I don't know. When I find your mother, I'll ask." LOL

September 01, 2010 12:38 PM
Anonymous
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Rainmaker
333,351

Ty Lacroix

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