The Great Recession hit in 2008 and 2009, but even after more than a decade’s long recovery there are still more young adults living with their parents than out on their own. It is a staggering statistic that points to the fact that it is still incredibly difficult for young people to get the leg up that they need to stand on their own two feet and own a place they can call home. Thus, the rise of alternative living structures such as co-living have taken on more meaning.
The concept of co-living is that a person pays a set amount of rent in order to have a private bedroom and a shared living space with other people (who they may or may not know personally). They share spaces such as bathrooms, living rooms, and kitchens. The setup is not all that unfamiliar to many young people as this is commonly the arrangement that many find themselves in when they are going through college.
CNBC.com details how some of the highest priced real estate markets are seeing this trend catch on in a big way in particular. Take a place like California for example where the price to rent or purchase a home is simply out of reach for most people who are just now starting their lives off and you can see why some are moving towards co-living.
The rate of change in wages is another reason why co-living is so popular. A lot of people have not seen a raise in years, and they don’t have the flexible income to put towards the homes or rentals that they may have been able to at some point in the past. It is incredibly interesting to see how these changes are having such a ripple effect in the economy as a whole.
Another factor playing into young people at least considering co-living is the fact that many are saddled with high student loan debt that they are now paying on. It is hard to juggle both student loan debt and a mortgage at the same time. Some have decided to ditch the idea of holding on to a mortgage and are instead looking at these co-living options. It is one way that they can balance the budget and still manage to get out of their parent’s home at the same time. These are the kind of steps and decisions that some people in our economy are having to make.