Over 3 Million Adults Migrate Home During Coronavirus Quarantine
The coronavirus pandemic has disrupted daily life around the country. Social distancing and stay-at-home orders have caused many companies to shift to work-from-home models and many colleges and universities have temporarily closed. As a result, over 32 million adults were living with parents or grandparents as of April 2020. 80% of these young adults are members of Generation Z, costing the rental market approximately $726 million each month. As work-from-home and distance learning procedures extend, the rental market may see long-term impacts with a lack of 18- to 25-year-old renters.
The 18- to 25-year-old demographic tended to experience seasonal living-at-home swings before the pandemic. Typically, in April 53-55% of young adults lived at home and this share increased to 55-57% by July. This April, however, 61% of young adults moved back home. In addition to college closures, many young adults, like all American workers, are experiencing unemployment due to coronavirus-related closures. 60% of employed 18- to 25-year-olds became unemployed during March and April.
Some of the metros with the hardest hit rental markets include Oklahoma City, Austin, and Nashville, each losing about 1.9% of their local rental markets in recent months. Other large cities may also start to feel the strain as work-from-home and distance learning become more commonplace and young adults do not have to move to go to work and school.
Although the majority of 18- to 25-year-olds who do not live with family are renters, those who recently stopped renting could use this opportunity to transition to homeownership. Gen Z renters contribute approximately $6 billion toward the rental market every month. If those renters are living at home for free or a discounted rental rate, these funds could be reallocated toward saving for a down payment. By using the down payment gifting platform, HomeFundIt™, potential home buyers can grow their savings even more and buy a home sooner.
How to use HomeFundIt:
- Down Payment Gifting – collect down payment gifts from family and friends through the easy-to-use online platform. Anyone can give up to $5,000 per contributor with a debit or credit card.
- UpIt Shop to Save – get extra pledges toward your down payment savings when you shop at over 1,000 participating online retailers. Even if you’re not ready to buy a home right away, you can start saving through UpIt.
- Closing Costs Grant – additional ways to earn up to $1,500 or 1% of the purchase price toward non-recurring closing costs.
If you or someone you know is interested in learning more about HomeFundIt visit www.homefundit.com.