Splitting the rent helps millennials balance their finances.
An FKD Feature exclusive

We all know that many millennials have roommates. Some people think that the shift in living situations has occurred because of a change in lifestyle choices and values. However, it has become more evident that it’s mostly because it is an easier way to pay the bills.

Rising cost of rent

The number of millennials living with roommates has been on the rise due to the increasing cost of rent and home expenses. This constant increase has made it very difficult for millennials to be able to afford to live on their own, and many still live with their parents if they do not live with a roommate. On average, millennials living with a roommate in New York save more than 13 percent of their income. Many students have to begin or continue paying off their student debt, and having roommates allows them to save on housing expenses.  

Competitive job markets

For most millennials, it is incredibly difficult to find a job right after college. The competition is tough, and many don’t have the experience required to obtain the jobs that they want. Millennials are also more vulnerable to stereotypes from employers, as some believe that millennials are underdeveloped in workplace skills. The idea that basic workplace skills cannot be taught in higher education causes millennials to miss out on many job opportunities. The disadvantage that millennials face while trying to find jobs makes it increasingly likely for them to struggle as homeowners.

Rising cost of tuition

While some millennials may feel the need to move out, there is also the reality that they might still need to get a handle on their student debt. A total of 58 percent of college graduates report having student debt, so tacking on the price of rent and possibly a low-paying job automatically makes expenses incredibly difficult to manage. Having a roommate could help cut the price of rent in half, allowing for a little more of your income to go toward paying off your student loans.

Takeaway

Millennials face many obstacles after graduation, but living with roommates could get rid of some of the financial burden. It has become increasingly difficult for millennials to pay the bills, and along with the rising cost of rent and the increased difficulty in finding a job, many have turned to living with their friends or just finding roommates to live with to split the cost of living.

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Header image: Adobe Stock

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Posted 03.16.2017 - 05:27 pm EDT