A growing number of Americans are opting to rent rather than buy homes as the rising costs of homeownership price many out of the market.
According to the National Association of Realtors, the median price of a pre-owned home in the United States hit $419,300 in May, up 5.8% from the previous year. This spike has been driven by a lack of housing inventory and rising demand, making homeownership increasingly out of reach for first-time purchasers.
This shortage of buyers has caused an increase in renters who cannot afford to buy yet. Increased demand for rental units has exceeded availability, resulting in higher costs. As a result, rent in many cities has increased dramatically. According to Zillow, the average rent across the United States is $2,036 as of May 2024, a 3.4% increase over the previous year.
Co-living places provide a unique solution to the housing crisis. Pew Research Center reports that 79 million American adults live in a shared household. Bungalow is redefining the rental industry by providing co-living spaces for young professionals in costly urban areas.
The rising demand for flexible and affordable living alternatives has fueled Bungalow's expansion to over 15 major American cities, while increasing housing costs have led to more Americans living with roommates.
As the country faces such challenges, the development of co-living spaces is expected to continue, transforming the housing landscape and providing an affordable renting option in an expensive real estate market. What are your thoughts on co-living spaces? Would you consider moving into one to save money?
For more insights on real estate investment, tune in to my podcast, Black Real Estate Dialogue. Watch on YouTube or listen on Apple Podcasts or Spotify.
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