Burdened by low incomes and high rent payments, a number of today's millennials are turning to the bank of Mom and Dad for help with housing payments, says Washington Post writer Michele Lerner.
A recent analysis by Apartment List found that since 2000, home prices have risen by 73 percent and rents have increased by 61 percent. At the same time, incomes for younger households have only increased 31 percent. One in four renters spend more than half their income on rent, and 15 percent of 25- to 35-year-olds live with their parents to save money on rent.
Apartment List’s survey found that 7.9 percent of non-student millennials receive help from their parents for their monthly rent. That number rises to 10.8 percent when students are included. Among those receiving rent assistance, 1 in 3 have their rent paid in full by their parents. About 60 percent of millennials getting help pay less than half of their rent because of parental support.
Down the road, many millennials are expecting that their parents will help them with a down payment. One in three anticipate family members will cover 30% or more of their down payment.Read More