This place is great! (mostly because mom and dad are paying)

Analysis: 40% of Americans aged between 22 and 24 get rent help from their parents

TRD New York /
Feb.February 09, 2017 02:00 PM

Millennial renters have found the best lender in town. It’s called the Bank of Mom and Dad.

About 40 percent of those aged between 22 and 24 receive some form of financial support from their parents, the New York Times reported, citing surveys that track young people through their first decade of adulthood. Of those who get extra cash from ma and pa, the average amount is about $3,000 a year. That figure — which works out to $250 a month — covers 29 percent of the median monthly housing costs in America’s metro areas. The Times’ analysis also found that financial dependence among young people has been going up since the 1980s.

Just how much parents are forking out typically depends on the careers of their offspring, and where they live. Young people who live in cities with more than 1 million people are 30 percent more likely to have their parents help with rent than those who live in smaller cities, the Times analysis found. They also get twice as much support as their smaller-city peers, after controlling for other factors.

More than half twenty-somethings who are chasing careers in art and design get rent money from their parents. Those young people receive an average of $3,600 a year, the Times reported. People who are in farming, construction, retail and personal services get the least amount of help from mom and dad.

“Someone who wants to go into graphic design or marketing requires a fair amount of time to get up to the point where you’re independent,” said Patrick Wightman, assistant professor at the University of Arizona who helped the Times analyze data. “Someone contemplating that kind of career isn’t going to take that first step unless they know they’re going to have that support to take an unpaid internship. If you don’t have other sources of support, that’s not even an option.”

Rent in Manhattan and Brooklyn remains high, but has plateaued, according to recent reports from Douglas Elliman. In January, Manhattan’s median rent, after landlord concessions, was $3,259 a month. In Brooklyn, the median rent was $2,702 last month.

A report from Fitch Ratings, released last month, found the rise in interest rates since the election is also making it hard for young people trying to enter the housing market. [NYT] — Miriam Hall


Related Articles

arrow_forward_ios
With a cooling trade war, stocks perform well, including real estate. (Credit: iStock)

Real estate stocks push up this week as U.S.-China trade tensions ease

Real estate stocks push up this week as U.S.-China trade tensions ease
416 West 25th Street and Maverick Real Estate Partners principal David Aviram (Credit: Google Maps and LinkedIn)

Chelsea landlord claims “predatory” lender is charging a crippling interest rate as punishment after losing foreclosure case

Chelsea landlord claims “predatory” lender is charging a crippling interest rate as punishment after losing foreclosure case
New York’s real estate market is becoming two different stories: Manhattan, where deals are falling — and the suburbs, where demand is spiking. (iStock, Unsplash)

Manhattan is cold, the suburbs and Brooklyn are hot: Here’s what the resi market looked like in July

Manhattan is cold, the suburbs and Brooklyn are hot: Here’s what the resi market looked like in July
Home sale price declines are expected for July, after a recent bump, according to a CoreLogic report. (iStock)

Home sale prices got a bump, but a drop is coming: Report

Home sale prices got a bump, but a drop is coming: Report
(Images courtesy of Victor Group)

The Getty condo chops prices up to 53%

The Getty condo chops prices up to 53%
From left: Trinity Investments CEO Sean Hehir and Benchmark Real Estate Group principals Aaron Feldman and Jordan Vogel (iStock, LinkedIn, Trinity Investments)

“Blank-check” companies make a comeback in real estate

“Blank-check” companies make a comeback in real estate
442 Union Street and 257 Berry Street (Google Maps)

Brooklyn’s luxury market reaches new pandemic high

Brooklyn’s luxury market reaches new pandemic high
Marwan Kheireddine (inset), Jennifer Lawrence and 400 East 67th Street (Getty, Compass, BDL Accelerate)

Jennifer Lawrence’s Upper East Side PH sold at 37% loss

Jennifer Lawrence’s Upper East Side PH sold at 37% loss
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...