Adult kids are moving in with parents to save for homes

foxbusiness.com:

National Association of Home Builders CEO Jim Tobin reacts to declining construction sentiment and says the government needs to 'be a helping hand.'

With fall buying season in full swing, and mortgage rates nearing 8%, prospective homebuyers are facing affordability challenges forcing some adults to move back in with their parents while they save for a home.

«While homebuyers have long received financial assistance from family members to help them afford a home purchase – especially first-time homebuyers who may not have already built up equity – we’re seeing more and more prospective buyers take this a step further,» according to Clare Trapasso, Realtor.com's executive news editor.

Research reveals that of those surveyed who are planning to buy a home within the next 12 months, half (51%) are potentially looking to their parents to help them prepare for buying a home. Nearly one-third (29%) say they’ve already moved in with their parents to help save money in preparation for buying a home and another quarter (22%) say they would consider doing so, according to a recent survey from Realtor.com and Censuswide.

THE REALITY OF 8% MORTGAGE RATES

Realtor.com economic research analyst Hannah Jones tells FOX Business that climbing rents and inflation have limited the savings potential of prospective homebuyers over the last few years.

«As a result, hopeful buyers have had to seek out creative solutions to achieve homeownership,» she says. «It is not surprising that these potential buyers have turned to other family members, many of whom may have extra space, lower expenses and the desire to help.»

Compass agent Jason Haber takes a closer look at the decrease in mortgage applications on 'The Claman Countdown.'

Potential savings