While our American culture prides itself on extreme individualism and self sufficiency, living with your parents while you save for a house might be the smartest decision of your life.

Both housing and rental prices have increased drastically over the past 3 years while wages have not. Home values in Massachusetts are up 36%, rental rates are up 20%, while wages are only up 8-10%

Home ownership is still a good bet against inflation. The data I found varied but if rental prices go up just 5% year over year the apartment you’re paying $3,500 for today could cost you $4,466 in 5 years. That’s an additional $966 a month.

Can living with your parents really help you save enough for a down payment?

If you and your partner were paying $3,500 for rent and were able to save that all that’s $42,000 you could save in a year. In 2 years you’d have $84,000.

You could buy a $550k house with 10% down and have enough for closing costs and some savings.

Assuming you have great credit and limited debt your monthly mortgage payment would be around $4,000 (Includes principal, interest, taxes, and insurance)

Living with your parents can also help you save on utilities and food costs furthering your savings.

It’s worth noting that living with parents is not an option for everyone and not everyone has the luxury of having parents in the first place.

Living with your parents (or another relative) might entail sacrificing certain freedoms and privacy, which, in turn, could put a strain on relationships.

It could also help propel you to homeownership and improve your life in so many ways!