More and more graduates are picking up the path of getting their diplomas and moving back with their parents. In 2016, the number of graduates who lived with their parents rose to 28% from 19% in 2015. The stats are alarming and depict how difficult it is for the graduates to find a home for themselves at a reasonable price.
While they are already under the debt of their college loan, it has become seemingly impossible for them to buy a house, especially because even $1 million is not enough to afford a decent, comfortable home in some of the cities. Las Vegas, which is considered to be the housing bust of the country, had 39% of graduates living with parents in 2016. On the other hand, in cities like New York and Miami, the figure was as high as 42% and 45% respectively.
As many as 20.5 million students graduated from college in 2018 according to the National Center for Education Statistics. And, it is unfortunate that not all of them will be able to look for a house immediately. In some of the areas, the rents are as high as the mortgage so they might just prefer to buy any of the homes for sale in San Antonio or other thriving places in the country.
So what do the graduating millennials do in such a scenario?
The Perks of Renting
The foremost advantage of renting is that you don’t have to pay the hefty down payment which is required in mortgages. Moreover, there are no additional expenses of maintenance and repairs as they are the responsibility of the landlord. Renting gives you a chance to save the larger chunks of money for some investment so that you can earn from multiple resources.
Most of the graduates would not want to be tied down to a particular location at the start of their career. There are high chances that they would like to move to different parts of the country and try out various cities in their attempt to look for better opportunities. By purchasing a house, they would actually cut down their option of trying new places.
With meager savings and a number of responsibilities, a recent graduate should not put himself through the hassle of home maintenance. It is quite a task to take care of the house, especially when the graduates only have enough money to buy old houses and not the brand new ones. A lot of money will go into home improvement and this is not the right time to indulge in such activities.
Even renting an apartment is not as easy as it may sound because your current income and credit score are taken into consideration. Your gross income determines if you can live in a comfy apartment or would need to compromise for a while before you start earning enough. The bills and grocery are still there to be taken care of.
Getting out of Parents’ House
If you really want to get rid of your childhood sooner or later, you need to make some hard financial choices which lie ahead of you. Unless you would like to depend on your mom or your dad, it is essential to cut down the extreme expenses and not buy extravagant things which might be way out of your budget.
A lot of graduates are only concerned about the rent but never think about the basic expenses which await them including utilities, insurance, your car, gas, electronics, the expensive smartphone plan, unlimited designer clothes, and the never-ending activities. It is essential to make yourself realize that the lavish lifestyle which you had at your parents was built after 20 or more years of struggle.
Even at 25 if you are living at your parent’s house and letting them cook, clean, and pay for you then you are still far away from being an adult. This is not adult preaching but one needs to realize their responsibilities before the rude and bitter reality hits you. Instead of becoming too dependent on the parents and forgetting all your financial responsibilities, it is wise to find a way out.
The Bottom Line
Considering the cost of living and the amount of money you have, always look for an option which is both convenient and affordable. If you find a good deal, don’t rush to your new place because you should make a decision after giving enough importance to each and every aspect of moving out.
With a booming economy and a lot of opportunities, San Antonio is a good place to live and one can easily find plenty of affordable homes for sale in San Antonio to lead a comfortable life.