It’s no secret that more millennials are living at home than ever before, and many parents are scratching their heads wondering how they’re going to get their kids out of the house before they hit 30.
According to a new survey by Apartment List, many parents have found the answer — and it involves their bank accounts.
Since 2000, home prices have increased 2.4 times faster than incomes for households headed by someone under 35 years old, according to the survey.
What that means for parents — also known as The Bank of Mom and Dad — is that 7.9 percent of non-student millennials are getting parental support with monthly rent payments, while 17.1 percent of millennials expect help with a down payment on a home.
Sydney Bennet, senior research associate for Apartment List, said it’s more common to see parents helping out their millennial children with groceries, cell phone bills and even buying a couch when they move into an apartment.
But paying their rent and kicking in for a down payment on a house are new trends Bennett is seeing. In a housing market where home and rent prices have risen much faster than incomes, Bennett said it’s no surprise millennials turn to family for help.
“Only certain parents can afford to pay their kids’ rent,” she said. “There’s a much larger group of parents who can let their kids live at home. Living at home is definitely at its highest — ever.”
Parental support with monthly rent and down payments can be good for apartment vacancy rates.
“It’s definitely good for landlords if it helps them find additional tenants,” Bennet said.
She said she was surprised to see how many parents are paying full rent for their kids — when their kids aren’t college students.
“It’s not surprising for kids in college, but if you’re an adult, that’s pretty surprising,” she said.