Twentysomethings, Read This Before Moving Out of Mom and Dad’s Placehttp://www.fool.com/investing/general/2013/10/26/20-somethings-read-this-before-moving-out-of-mom-d.aspx Jordan Wathen
October 26, 2013
The economy hasn't been easy on twentysomethings. Job growth is abysmal, and a college degree no longer guarantees a job right out of school.
For many college graduates, moving back in with mom and dad was the easy answer. Some 21% of college graduates aged 18-34 live at home with their parents. But moving out may not be as easy as packing your bags to find a new place to live.
Here's a few things you should know:
Apartments are as full as ever
For every 25 apartments, there's only one opening. And for each opening, there are several families, singles, and roommates looking for a new dig.
With vacancy rates so low, landlords have piles of applicants to shuffle through. Sam Dogen, a real estate investor and blogger at Financial Samurai, told me that he looks carefully through each application and their credit report:
Historically, apartments have been a solution for many who couldn't buy a home on their own. But with the rental market so tight, you may find that units are only open to people with credit fit for a prime mortgage.
Just enough income isn't enough
This is particularly difficult for twentysomethings to achieve in areas with a high cost of living. While student loans may have funded a dorm room in college, you'll need to show that you have the income to more than afford an apartment. Some select communities require as much as six months to one year at the same job, which can come back to bite twentyomethings who have recently accepted a new position.
Student loan debt can crimp rental affordability