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‼️More young adults live with parents as housing costs rise‼️

The national inventory crunch and missed opportunities during the pandemic have left many under 35 unable to afford the ability to strike out on their own.

🔹The total number of adults under 35 who live with their parents has hit a new record of 25.2 million as rising housing costs continue to present barriers to homeownership for many young Americans, according to a new Realtor.com report.

That number, which the report said reflects 2025 co-residence data derived from the IPUMS Current Population Survey (CPS) Annual Social and Economic Supplement (ASEC), represents one-third of all adults under 35 — down just slightly from the all-time high share of 33.6% in 2020.

Though largely educated and employed, these young adults are still stymied by a lack of affordability, Realtor.com Senior Economist Hannah Jones said.

"What's holding them back isn't a lack of qualifications, but rather, at least in part, a lack of housing they can actually afford," Jones said in the report. "This is a supply story, not an employment story."

🔹How we got here: The slow pace of new construction over the past decade-plus has kept housing prices prohibitively high for many young adults, the report noted, with the national median list price now at $430,000 and the median asking rent at $1,673 — up 34.4% and 17.9%, respectively, from 2019 levels.

The high co-habitation rate also follows a series of economic crises that have continued to disrupt recovery. During the Great Recession, parent-adult child co-residence rates increased significantly and never fully recovered. Co-residence rates spiked again during the pandemic before briefly retreating when some young adults latched onto low mortgage rates. There was then a resurgence of the trend as those who missed out suddenly had to deal with elevated rates, rising rent costs and low inventory.

🔹Employed, but priced out: Bucking the old stereotype of young adults living with their parents while unemployed, most (70%) between the ages of 25 and 34 do have jobs today, a share that has gradually increased over time.

As of 2000, about 1 in 9 adults in their late 20s were employed and living at home, the report noted. By 2025, that share grew to nearly 1 in 7 even as employment rates within this demographic held steady — indicating this change has occurred in response to high housing costs.

Overall, these young adults skew male, though the gender split is closer among younger age groups. About 90% of all adults between 24 and 34 who are living with parents have never been married, up from 79% in 2000. Meanwhile, about one-third of those in their mid-to-late 20s have a four-year degree, up from fewer than 1 in 4 a quarter-century ago.

🔹Divided generations: Depending on their age during the pandemic-era mortgage rate drop, young adults have progressed in different ways when it comes to housing.

For the 25 to 29 age group, there has been a slight decline in recent years in the share of those living with parents. This drop occurred because many were able to gain a place in the market before rates and prices started climbing, the report noted. But those who are now around 25 hit their prime renting age just as mortgage rates and prices spiked. This younger group hasn't seen the same decline.

Meanwhile, 12.7% of adults ages 30 to 34 resided with their parents in 2025 — twice the share recorded in 2000. Individuals in this age group were 25 to 29 during the pandemic, the report noted, and became stuck as housing conditions rapidly changed around them.



https://www.realestatenews.com/2026/06/18/more-young-adults-live-with-parents-as-housing-costs-rise

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‼️Should You Offer a Concession to Get Your Apartment Leased Faster?‼️

The deluge of newly built apartments in the Sunbelt and Northeast has put tenants in the driver’s seat when negotiating rent prices. Landlords in large multifamily developments have been acting accordingly by offering concessions such as free rent, waived fees, and gift cards. Many smaller landlords would be right to be concerned that the volume of apartments on the market may have had a trickle-down effect.

According to TurboTenant data, mom-and-pop landlords have largely been unwilling to offer concessions to fill apartments. Rather, many landlords have kept rents flat, which, as costs have increased, has compressed cash flow.

So what’s the right move? Concessions, a rent freeze, or both? And how can landlords survive as taxes, insurance, and maintenance costs keep rising?

🔹Just How Much Are Big Landlords Giving Up?
After several years of intense rent growth, Zillow reports that nearly 40% of rental listings on its platform include concessions, the highest share ever recorded for this time of year. It tallies with the sheer level of new construction: Developers completed 608,000 multifamily units in 2024, the most in 40 years, resulting in vacancy rates that have climbed to 7.3% from 5.6% in 2021.

“Renters don’t have to settle this spring,” said Zillow senior economist Kara Ng in a Zillow press release. “With more supply on the market than in decades, there are real choices out there—and real room to negotiate on price, perks, and terms. Renters are in a position to push for a better deal, and property managers are ready to give them one.”

🔹The Psychology Behind Free Rent
Larger institutional landlords with deep pockets can afford to offer incentives such as free rent because they often have wiggle room built into their operational expenses. Of course, it’s not ideal, but they often offset these concessions with premium rents for the amenities they provide in their apartment buildings. Increasingly, larger landlords have been padding fees for amenities such as parking, office/media room use (billed as “technology fees”), gym use, and more onto the base rental fee, which, in light of the affordability crisis, has been increasingly in the spotlight.

“People are being misled into signing up for rents that they cannot afford,” San Francisco supervisor Bilal Mahmood told The San Francisco Standard.

In January 2025, Greystar, the country’s largest corporate landlord, was on the receiving end of a lawsuit filed by the Federal Trade Commission (FTC) and Colorado Attorney General Phil Weiser for “deceiving consumers about monthly rent costs by tacking on numerous mandatory fees on top of advertised prices,” an FTC press release stated.

Later in 2025, Greystar agreed to a $24 million settlement, which was used to refund Greystar tenants who were victims of hidden fees. “At a time when Americans are struggling to find affordable housing, the FTC is focused on monitoring the housing marketplace to ensure that competitors are meaningfully competing on price and that consumers receive transparent pricing,” said Christopher Mufarrige, director of the FTC’s Bureau of Consumer Protection.

🔹The Pendulum Swings Toward Smaller Landlords
The good news for smaller investors is that, according to a recent TurboTenant survey, over 80% of independent landlords stated that rental demand has not dropped in their area. That is partly because younger tenants—millennials and Gen Z—are eschewing the kind of pricey amenities that bigger landlords have been padding their rents with.

“They are not looking for the super-expensive stuff you see in a large multifamily,” TurboTenant co-host John Martin said on the Landlord Lens podcast. “They are not looking for the rooftop pool, the floor that’s actually a gym, the yoga rooms. They are looking for three things: an in-unit washer-dryer, pet-friendly, and AC.”

This clearly works in a smaller landlord’s favor because they don’t have to compete on price with the larger, corporate landlords who must pay for luxury amenities in their rentals and can thus advertise lower rents than the big-money competition without actually dropping rents.

For the comparison to be truly effective, corporate and independent landlords need to be compared side by side in individual markets. That is an undertaking each small landlord would need to do, specific to their market, before deciding to drop rents or offer a concession.

🔹Renters Still Cannot Afford to Buy
TurboTenant clients have yet to see a drop-off in rental demand, unlike other institutional landlords, likely because their apartment costs align with the price points of tenants who can afford them.

Also factoring into this is the reality that tenants still cannot afford to buy, with 36.1% of American tenants having lived in their apartments for five years or more, according to a March 2026 Realtor.com survey of the 100 most populous metropolitan areas in the country, comprising more than 80% of the renting population.

While many corporate landlords are willing to offer concessions to expedite absorption rates in areas where most new apartments have come to market, it’s by no means a sign of desperation, as affordability continues to hamper homebuying.

“The economics of renting versus homeownership remain very favorable,” Benjamin Schall, CEO of multifamily developer and REIT AvalonBay Communities, said in a recent call with investors as quoted by Realtor.com. “Market occupancy in our established regions remains solid.”

While construction has slowed in the Sunbelt, it has continued in the Northeast, with a 42.1% year-over-year surge in completed apartments—the only region to record growth, as quoted by Realtor.com.

“High home prices and mortgage rates keep pushing people toward renting,” says Realtor.com economist Jiayi Xu in a press release. “At the same time, many Northeast cities have been underbuilt for years, so the supply base is low, and even a modest increase can look like a big surge.”

🔹Final Thoughts: Structuring Offers Without Killing Cash Flow
For a small landlord with an eye on cash flow, serious consideration needs to be given before offering concessions such as free rent. CNBC reports that the average concession discount in early 2026 was about 10.7% of annual rent, amounting to roughly five weeks of rent over the lease term.

As each market is different, individual landlords will have to decide whether to concede a single month’s rent or keep an apartment vacant longer. A common tactic used by large landlords is to extend the lease term beyond the usual 12 months to 13, 14, or 15 months to offset the upfront loss. However, given that many smaller landlords have reported no decline in demand in their markets, a month’s concession might not be necessary, and their rents are likely lower than those of larger institutional investors anyway.

The more pressing issue for smaller landlords is whether to keep rents flat to ensure units remain tenanted, even in the face of increased costs. This is where taking a leaf out of a corporate landlord’s handbook—increasing lease terms—might offset short-term fears. Also, lowering operational expenses, primarily through refinancing at a more favorable rate when possible, is paramount.



https://www.biggerpockets.com/blog/should-you-offer-a-concession-to-get-your-apartment-leased-faster

‼️Weekly mortgage demand surges nearly 11% higher, despite volatile interest rates‼️

🔹Mortgage rates moved slightly higher last week, but both current homeowners and potential homebuyers returned to the mortgage market, perhaps for the last spring push. Total mortgage application volume rose 10.8% last week compared with the previous week, according to the Mortgage Bankers Association’s seasonally adjusted index.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances, $832,750 or less, increased to 6.60% from 6.57%, with points decreasing to 0.63 from 0.67, including the origination fee, for loans with a 20% down payment.

🔹“Mortgage rates were volatile last week as news from the Middle East continues to drive markets,” said Mike Fratantoni, senior vice president and chief economist at the MBA. “While the average rate was up slightly, there were opportunities where borrowers were seeing somewhat lower rates.”

Applications to refinance a home loan rose 15% for the week and were 20% higher than the same week one year ago. Last year at this time the 30-year fixed rate was 33 basis points higher.

🔹Applications for a mortgage to purchase a home climbed 7% for the week and were 4% higher year over year. Given how volatile rates were at the start of the spring sales market, some demand may have been pushed forward, with buyers now giving one last push before the dog days of summer.

Consumers may also be taking advantage of lower rates on adjustable-rate mortgages. The ARM share of activity increased last week to 8.6% of total applications. The average rate on a five-year ARM last week was 5.96%

🔹Mortgage rates were flat to start this week, according to a separate read from Mortgage News Daily, but could move more markedly with the release of the government’s monthly consumer price index.

“The market is already priced for the median economic forecast, as always,” wrote Matthew Graham, chief operating officer at Mortgage News Daily. “If the actual numbers come in much higher or lower than those forecasts, it could cause volatility for rates in either direction.”

🔹Key Points🔹

▫️The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances increased last week to 6.60% from 6.57%

▫️Applications to refinance a home loan rose 15% for the week.

▫️The ARM share of activity climbed last week to 8.6% of total applications.



https://www.cnbc.com/2026/06/10/weekly-mortgage-demand-surges-nearly-11percent-higher-despite-volatile-interest-rates.html

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‼️Housing market won’t be affordable for at least 7 years: Report‼️

Shifts in household incomes, home prices and mortgage rates will be key to housing affordability improvements in the next decade, according to Oxford Economics.

Even if home prices flatten and interest rates fall, it'll take at least seven years for the housing market to swing back toward affordability, according to a new report from Oxford Economics.

The economic advisory firm's latest Housing Affordability Index was measured at 77.9 in the first quarter of 2026. Over the next 10 years, Oxford forecasts three different scenarios for its index based on how home prices and mortgage rates shift:

▫️Reaching 100 (the level at which homes are generally considered affordable) by 2033 if home prices remain flat and mortgage rates drop by about 50 basis points

▫️Reaching 100 by 2036 if home prices remain flat and rates do not drop

▫️Staying below 80 for the next 10 years if historic baseline trends continue

The third outcome is most likely when Oxford's household income, home price and mortgage rate projections are all taken into account, according to the report.

🔹Why the gloomy forecast? These predictions are bleaker than those from other home index models — including the National Association of Realtors' — because they include a wider range of cost variables, including property taxes, homeowners insurance and homeowner association fees.

Oxford also uses a different measure of income than NAR that's based on the U.S. Census Bureau's American Community Survey, resulting in a lower estimate, the report noted. In 2024, for example, Oxford pegged the median income at $81,604, while NAR's estimate was $101,360.

The recent rise in homeowners insurance rates, particularly in states like Florida, is also having an impact on affordability. If Oxford were to remove homeowners insurance from its calculations, the national index would rise from 77.9 to 83.5, said Nancy Vanden Houten, U.S. lead economist at Oxford Economics and the author of the report.

🔹A need for more housing: The national housing supply crunch is also impacting affordability, with the report estimating that the U.S. is currently short over 2 million units.

With the pace of new home construction insufficient to alleviate the shortage, the low number of existing homes going back on the market is compounding the problem, Vanden Houten said.

The report estimates that the turnover of existing owner-occupied stock averaged 4.7% over the past year, bouncing around levels seen around 2009-2012 during the global financial meltdown. In contrast, the turnover rate in 2020 was around 8%.

"I think more turnover in the existing market would improve housing affordability. But that would just unlock existing supply and doesn't address the underlying shortage of housing units," Vanden Houten said in an email to Real Estate News.

Though Oxford's affordability index factors in a range of costs, "housing affordability is mainly driven by home prices, mortgage rates, and household income," Vanden Houten added. "More than twice as many Americans live in the top 10 states with the highest home price-to-income ratios compared to the 10 states with the lowest price-to-income ratios, where homebuying is more affordable."

🔹While improving, affordability misalignment persists: That disparity of Americans living in markets that aren't affordable for them is echoed in other reports, like in one from NAR and Realtor.com featuring a listing-income score.

Overall affordability is moving in the right direction — "just more slowly, and less evenly, than many expected only a few months ago," said Mark Fleming, chief economist at First American.

According to First American's latest home price index data, affordability improved in 91 of the 100 largest markets between February and March, a slight decline from the previous month when all 100 markets posted improvements.

"The housing market entered the spring season with stronger affordability fundamentals than a year ago, but the recent rebound in mortgage rates is a reminder that affordability gains remain vulnerable to shifts in financial markets and the broader economic environment," Fleming said.



https://www.realestatenews.com/2026/05/27/housing-market-wont-be-affordable-for-at-least-7-years-report

‼️Mortgage rates are easing slightly, but homebuyers are retreating⁉️

🔹Mortgage rates finally eased a bit last week, but it was not enough to light a fire under demand. Total mortgage application volume dropped 2.5% compared with the previous week, according to the Mortgage Bankers Association’s seasonally adjusted index. The week’s results include an additional adjustment for the Memorial Day holiday.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances, $832,750 or less, decreased to 6.57% from 6.65%, with points increasing to 0.67 from 0.65, including the origination fee, for loans with a 20% down payment.

“The prospect of easing energy prices given the evolving situation in the Middle East brought mortgage rates slightly lower last week,” said Joel Kan, vice president and deputy chief economist at the MBA. “The 5-year ARM rate inched up slightly, reflecting a flattening yield curve, as short-term rates are at risk of increasing while longer-term rates have dropped.”

🔹Applications for a mortgage to purchase a home declined 3% for the week to the slowest pace since April. Demand was 7% higher than the same week one year ago, when mortgage rates were 35 basis points higher.

Applications to refinance a home loan fell 2% for the week and were 20% higher than the same week one year ago. Last week’s refinance pace was the slowest since last June.

There was less demand for adjustable-rate mortgages, or ARMs, as consumers opt for those when rates are rising.

🔹Mortgage rates are essentially flat so far this week, according to a separate survey from Mortgage News Daily.

“Unlike the average trading day of late, bonds held inside a very narrow range AND didn’t visibly respond to any major Iran war news (and the typical oil price volatility that follows),” wrote Matthew Graham, chief operating officer at Mortgage News Daily.

Bonds could have a bigger reaction this Friday, with the government’s release of the monthly employment report.

🔹Key Points🔹

▫️The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances, $832,750 or less, decreased to 6.57% from 6.65%

▫️Applications for a mortgage to purchase a home dropped 3% for the week to the slowest pace since April.

▫️Applications to refinance a home loan fell 2% for the week.



https://www.cnbc.com/2026/06/03/mortgage-rates-are-easing-slightly-but-homebuyers-are-retreating.html

‼️Mortgage refinance demand drops 18% as rates hit highest level since August‼️

🔹Mortgage rates continued their climb last week, making it harder for current homeowners to save on a refinance. Potential homebuyers also pulled back a bit, causing total mortgage application volume to drop 8.5% last week compared with the previous week, according to the Mortgage Bankers Association’s seasonally adjusted index.

🔹The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances, $832,750 or less, increased to 6.65% from 6.56%, with points rising to 0.65 from 0.60, including the origination fee, for loans with a 20% down payment. The 30-year fixed rate has climbed 30 basis points over the past five weeks to its highest level since August 2025.

Refinance demand took the hardest hit, with those applications down 18% for the week. They were still 19% higher than the same week one year ago. Last year at this time the 30-year fixed rate was 33 basis points higher.

🔹“There were large declines in applications across loan types – conventional refinances were down 14 percent, along with an 18 percent decrease for FHA applications and a 34 percent decrease for VA applications. Overall, refinance applications accounted for 38 percent of applications, the lowest share since June 2025,” said Joel Kan, vice president and deputy chief economist at the MBA, in a release.

Applications for a mortgage to purchase a home fell 0.4% for the week and were just 5% higher than the same week one year ago.

🔹“The average loan size for a purchase application reached another survey high at $473,600, as borrowers with smaller loan sizes were less active given the higher rate environment and its negative impact on their purchasing power,” Kan added.

Mortgage rates moved very slightly lower to start this week, according to a separate survey from Mortgage News Daily. Investors saw a potential de-escalation in the war with Iran, which caused bond yields to drop and mortgage rates to follow.

🔹Key Points🔹

▫️The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances, $832,750 or less, increased to 6.65% from 6.56%.

▫️Applications for a mortgage to purchase a home fell 0.4% for the week and were just 5% higher than the same week one year ago.

▫️Refinance applications accounted for 38% of applications, the lowest share since June 2025.



https://www.cnbc.com/2026/05/27/mortgage-refinance-demand-drops.html

‼️Can You Still Flip Houses in 2026? We Asked Someone Who’s Done It 60+ Times⁉️

Everyone’s got a take on flipping right now. Half the internet will tell you the math is dead, margins got squeezed out, rates broke the model, and you should move on. The other half is posting check photos on Instagram.

Somewhere in the middle is the truth. And the truth sounds a lot like Leka Devatha, a Seattle-based investor who left a corporate career at Nordstrom to flip houses full-time and has closed over 60 deals in one of the country’s most unforgiving markets.

We put her in the “Texting With” hot seat and asked the questions most investors are actually thinking but are too polite to ask in the group chat.

🔸“How Do You Even Find a Flip That Pencils in Seattle Right Now?”

You get closer to the deal than everyone else.
Leka’s exact words: “Off-market relationships, speed to close, and knowing your rehab numbers so you can see margin where others see risk.” When every serious buyer is running the same MLS search and submitting the same offer, the edge lies in the prep work you did before the listing ever went live.

The people who say the math doesn’t work in Seattle are usually running the math on someone else’s deal. The investors still closing are doing it because they underwrite faster, move faster, and trust their numbers more than the competition does.

🔸You budget for cosmetics, and when you demo the kitchen wall, behind the wall is a problem that has been living in that house since the Clinton administration. Now your light refresh has a structural component and a permit timeline.

As Leka puts it, “What looked like a cosmetic project reveals structural or systemic issues mid-demo, the schedule stretches, carrying costs stack up, and by the time you exit, you’ve eaten your margin in holding costs, overruns, and a slow market.”

The honest fix: Build contingency in from day one, and price scope discoveries before they price you out.

🔸“If a New Flipper Had $100K and One Shot, What Should They Actually Buy?”

Leka says, “A dated but structurally sound single-family in a proven resale neighborhood.” Cosmetic-only scope. Purchase price low enough that your $100K covers the down payment, rehab, carrying costs, and a buffer you actually intend to use.

The ARV needs to be defensible, with “comps that closed in the last 90 days,” not from 2022 that you found just to make the spreadsheet look better.

The first deal is not supposed to be the one that retires you. It’s the one that teaches you what carrying costs actually feel like, what real scope creep looks like mid-demo, and whether you have the stomach for it before you go bigger. A boring deal with a real profit beats an exciting deal with a negative lesson.

🔸“How Do You Actually Fund a Flip Today? What’s the Stack?”

Hard money is still the backbone, typically 70% to 75% LTV on purchase with rehab draws built in. It’s running 10% to 13% today, which is not cheap, but as Leka says, “The speed is worth it when you’re competing for a deal.”

Having a lender you’ve already closed with matters more than the rate on paper. They pick up the phone. They move.

Hard money rarely covers everything, so private capital fills the gap: down payment, equity cushion, and closing costs. “This money moves on trust, not underwriting,” Leka says, which means you need to earn it before you need it.

🔸“You Left Nordstrom to Flip Full-Time. What’s the Part Nobody Talks About?”

Leka says, “The income gap nobody prepares you for.”
Not just financially, but psychologically. At a corporate job, you get a paycheck every two weeks, whether the quarter was good or bad, and as Leka describes it, “your self-worth gets quietly tied to that stability.” When you flip, you can do everything right and still wait eight months to see a dollar.

Her reframe on the whole thing: “The leap isn’t really about courage; it’s about rewiring how you measure progress when there’s no external validation telling you you’re on track.” That part takes longer than most people think, and it doesn’t come up in the YouTube videos about your first flip.

🔸“You’ve Done 60+ Flips. What Did You Use to Obsess Over That You Don’t Even Think About Anymore?”

Comps. Early on, Leka would agonize over every sale within a mile, second-guess the price per square foot, and build elaborate spreadsheets trying to “science my way to certainty.” Now she can walk a property for 20 minutes and land within a tight range of what it will sell for.

Because, as she puts it, “The real comp isn’t a spreadsheet. It’s 12 years of watching what buyers actually do when they walk into a room.”

That kind of pattern recognition doesn’t come from a course. It comes from closing deals when you’re scared, losing money once in a way that stings just enough, and showing up again anyway.

The spreadsheet is still there. It’s just not running the show anymore.

Leka Devatha is a Seattle-based real estate investor and flipper with 60+ transactions and a track record in one of the country’s most competitive markets. Follow her on Instagram:

Want more investor conversations like this one? The BiggerPockets Investor Brief drops three times a week with deal breakdowns, market news, and the real numbers behind real portfolios.



https://www.biggerpockets.com/blog/can-you-still-flip-houses-in-2026-we-asked-someone-whos-done-it-60-times