College is one of the most important and developmental stages in most people’s lives, and it’s also one of the most fun. Through classes, friends and activity, young people can navigate their newfound freedom as they prepare to enter the real world. One of the most essential steps in this process and first thing that students do is find a dorm, however, this year many students are struggling to find one. According to a survey from Realtor.com – conducted from July 12 to July 17, with over 500 current and recent college graduates participating – Thirty-five percent of students reported being unable to afford to rent an apartment in their college town with 19% relying on parental help to pay rent. So, what’s to blame, well 44% of students said the overall real estate market is to blame. This sentiment seems to check out.
Because of COVID, housing prices saw a major increase during the pandemic which left many prospective buyers flocking to rental properties as a viable alternative. This resulted in an increased median rental cost. Moreover, COVID prompted retirees as well as remote workers to move into areas they found more attractive – once again squeezing down the supply of real-estate available to college students. To deal with this situation, students are planning on making financial sacrifices. 21% of students will be moving back home, 13% will live with more roommates to lower the cost, and 10% will lower their overall spending. What do you think about the shortage of housing? And will the housing market cool off anytime soon?
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.