Co-Living: The Millennial Home Buying NemesisJuly 7th, 2017
In the foothills of L.A. is a home, or rather two homes, joined by shared living spaces that may have become the new ideal for the rising millennial generation. While this may seem a little outside the box, the home shares only a few spaces, such as the entry walkway, the pool and outdoor areas, while most of the interior remains private.
Today, there are many more co-operative living situations being created in big cities – such as New York City, Seattle, the Bay Area(San Francisco) and London. The trend is definitely on the rise as space is shrinking and the younger generation is coming into its own.
There are more than a few start-ups advertising this type of community, and the younger generation is buying into it – why? It offers a dorm-like community and your “house-mates” are chosen by completing a survey (much like a dating profile). Essentially, the founders want you to be able to share your space with someone with the same goals, ideals and dreams as you have. Even better, most spaces come complete with amenities this generation is becoming accustomed to. These amenities often include: shared hot tubs, laundry services, cleaners, yoga, fresh food, personal coaching and even massage services in some areas. However, it is most definitely more expensive.
If millennials are shelling out $4,000 a month for rent, in some cases, to share a space with 5 or 6 like-minded people, why aren’t they just buying? These types of communities ask for no credit check, no earning rules and no year -long leases. You can sign a lease for 30 days and then be on your way. No long contracts or mortgages.
This is appealing to the younger generation who seem to always be moving from place to place searching for the next big idea. Many aren’t settling down, as their parents did. But how long can these start-ups keep this type of living going? How long will the rising generation be able to continue to pay these premium prices? That’s a great question – one we can’t wait to see play out.
Why live with people you barely know, at a price you can barely afford? We don’t get it either. You could spend less than half of the monthly rent each month to live in your own home. Come and talk to us. We offer great pricing on all types of loans and a down payment assistance program that only asks for $500 up front. Email or call us today to see if you qualify for a loan.