Moisey Abdurakhmanov began his career in engineering in Boynton Beach, Florida, before deciding he wanted to purchase his own home. He was renting a home with friends, but realized he was essentially paying someone else’s mortgage each month. When his lease ended, he moved back in with his parents, saved diligently, and bought a house in January 2021, which he describes as one of his best decisions.
Many millennials are following a similar path to homeownership. A survey conducted by the National Association of Realtors found that around 24% of individuals aged 25 to 33 who purchased a home between July 2022 and June 2023 moved directly from a family member’s home. Additionally, a survey by Realtor.com and Censuswide revealed that 29% of people planning to buy a home in the next year had already moved in with their parents to save money, while 22% were considering this option.
With high housing prices and increasing mortgage rates, saving for a house may seem like a lengthy process. Moving back in with parents can expedite the process and eliminate the stress of synchronizing a home purchase with the end of a rental lease.
However, this strategy comes with challenges, regardless of the positive relationship you have with your parents. Here are some tips on how to make it work:
Clarify your savings goals
Before discussing the idea, research the housing market in your desired location, determine how much you can afford, and establish a savings goal. The main upfront expenses are the down payment and closing costs. Down payment requirements vary by mortgage type, and closing costs typically range from 2% to 6% of the loan amount.
Consider taking a first-time home buyer’s class to educate yourself about the process, and consult with lenders to get preapproved for a mortgage. Set a time frame for reaching your savings goal once you move back home.
Discuss expectations
Have open conversations with your parents about your goals and time frame for saving. Express your expectations about living together, and inquire about theirs. Clear communication is key to avoiding misunderstandings and potential conflicts.
Agree on household responsibilities, such as contributing to expenses, grocery shopping, cleaning, and general house rules. Setting boundaries and respecting each other’s expectations is essential for a harmonious living arrangement.
Schedule regular family check-ins
Maintain open communication by scheduling regular check-ins to discuss how things are going. Address any issues that arise, evaluate your progress towards your savings goal, and adjust your timeline if necessary. These conversations don’t have to be formal meetings and can take place during a meal or relaxed outing.
Listen and empathize
Practice empathy and active listening when conflicts arise. Try to understand each other’s perspectives and work towards finding mutually beneficial solutions. Moving back home can be an opportunity to strengthen your relationship with your parents and prepare for your next steps towards homeownership.
The experience of living with his parents helped Abdurakhmanov prepare for his transition to owning his own home. “It was a good buffer period for me to reestablish myself and everything about me that I wanted to take forward moving into my own place,” he reflects.
The article Moving Back Home to Save for a House: How to Make It Work originally appeared on NerdWallet.
