House Hacking a Wave of the Next Generations??

[Anthony Swain]

Hey gang! 

 I wanted to share an interesting article. 

In short, the article states, Gen Z & Millennials are using house hacking (HH) with rising prices and current interest rates to begin home ownership. More than half of the surveyed Gen-Zers and Millennials agreed HH as positive. 

The article, mentions a household would need at least $114k to afford a median priced home ($420,000 as of writing). I think HH provides these new home buyers the opportunity to purchase a home with some financial flexibility being able to rent out portions for extra income. 

I think Gen Z & Millennials are more keen on a nomadic lifestyle too. A lifestyle that they can travel frequently and for longer. A solid HH gives them that flexibility to maintain that lifestyle. I've met several Millennials, like myself, that rent out portions of their home and their entire home while they go away on multiple week travel excursions to offset most or all of their mortgage. 

How do you all feel? Do you think this is a wave of the future or just a trendy strategy for now?

I think it is here to stay for my generation and future generations. As a house hacker myself, I am doing it at my wife and I's current duplex and will continue to do it for at least our first few properties. 

[Wale Lawal]

@Anthony Swain

More and more young people prefer house hacking because it is financially flexible and suitable for those with student loans or other obligations. For those who cherish mobile lifestyles, it came about as a means of lending support in paying off their houses or having some extra cash. The rise and rise of house hacking might keep rolling considering that housing remains unaffordable due to high prices and low inventory resulting in an upward pressure on millennials headed for creative solutions like house hacking.

Even though stylish nowadays, not only is house hacking in fashion but also bears enduring benefits like creating a property ladder, passive income generation, and financial freedom attainment. If more people achieve this through success with house hacking then perhaps it could turn into one of the most popular investment strategies available today. Market conditions, economic factors, as well as buyer tastes tomorrow will determine its future.

Good luck!

[Anthony Swain]

@Wale Lawal Great points! You hit the nail on the head.

You're right, all the benefits make it so appealing.

I think it will continue to be popular in the investing community unless something drastically changes. 

[Steve K.]

I still prefer the term "hippy flop-house" personally. I got my start living in a 4 bed, 3 bath house with 8 house mates and 4 dogs, plus there was usually one or two more people on the couch or in their van in the driveway as well. The good old days! No better way to get started in my opinion, especially in expensive markets where the benefits of owning over renting can be life-changing thanks to appreciation.  

[Taylor Doyle]

I'm a millenial, and I and a number of my friends have done househacking on multi-units as a way into our first properties. At the time, I don't think any of us knew about Bigger Pockets, we just thought it was smart! My wife and I still live in our multi-unit building in Chicago. Over time the property has grown with us as our family has grown (we took over parts of other units to accommodate our work-from-home and new children's needs), so we have able to afford in a more expensive building up front and stay longer in it. 

I encourage all my friends and family to consider it. 

[Rick Albert]

My mentor house hacked in the 70s. It has always been a thing. The buzz word of "House Hacking" hasn't been around for as long.

Not everyone wants to be a landlord. I think there is a trend of people who want to achieve financial freedom early now that we have seen older generations struggle since they were closer to retirement age during the Great Recession and some still have to work to this day to catch up.

[Wale Lawal]

Quote from @Anthony Swain:

@Wale Lawal Great points! You hit the nail on the head.

You're right, all the benefits make it so appealing.

I think it will continue to be popular in the investing community unless something drastically changes. 

 Yes indeed!

Keep  learning and growing...

[Vicente Hernandez]

As a young millennial, I have slowly turned the corner towards a nomadic lifestyle. I have enjoyed living in different parts of my city every year, and many of my friends are in the same boat. House hacking is still very tricky and you need of capital to make a move but I do agree I have seen more people my age use the BRRR method. I like renting but if HH is my way into home ownership might just hive it a try.

[Jennie Berger]

Quote from @Anthony Swain:

Hey gang! 

 I wanted to share an interesting article. 

In short, the article states, Gen Z & Millennials are using house hacking (HH) with rising prices and current interest rates to begin home ownership. More than half of the surveyed Gen-Zers and Millennials agreed HH as positive. 

The article, mentions a household would need at least $114k to afford a median priced home ($420,000 as of writing). I think HH provides these new home buyers the opportunity to purchase a home with some financial flexibility being able to rent out portions for extra income. 

I think Gen Z & Millennials are more keen on a nomadic lifestyle too. A lifestyle that they can travel frequently and for longer. A solid HH gives them that flexibility to maintain that lifestyle. I've met several Millennials, like myself, that rent out portions of their home and their entire home while they go away on multiple week travel excursions to offset most or all of their mortgage. 

How do you all feel? Do you think this is a wave of the future or just a trendy strategy for now?

I think it is here to stay for my generation and future generations. As a house hacker myself, I am doing it at my wife and I's current duplex and will continue to do it for at least our first few properties. 

@Anthony Swain Great post!

NOT a millenial but I'm a HUGE believer in the power of househacking! :) I have been renting a 2 bed 2 bath apartment in a luxury boutique highrise building with amenities galore and lake views in South Loop for 4.5 years. About 1.5 years ago I decided to move my 'office' into my living room and fully furnish my extra bedroom and bathroom for traveling students & professionals. 

Since beginning, I've rented to about 8 different people from various walks of life - mainly business travlers from other countries, rotating medical students, and travel nurses. Their rent helps to tremendously offset my high rental expenses (apartment rent, building storage fee, parking). I rent out on a 32+ day basis to avoid Chicago red tape and building restrictions.

I own real estate in several states (strange that I'm still renting, I know!). And while ultimately I'd like to have a multi unit of my own that I actually house hack, for now I get to live in a first class building (maintenance free) on a non-first class budget. Additionally, I really LOVE meeting new people and true hospitality is in my blood. Traveling is one of my greatest passions, and I haven't had the opportunity to travel much since starting my business 4 years ago. I love how international travelers bring their unique customs and cultures to me. :)

House hacking is HERE TO STAY.

-Jennie Berger, Property People

[Anthony Swain]

WOW! What an amazing example @Jennie Berger!

House hacking can come in many many shapes and sizes. It doesn't have to be the traditional live in one unit and rent other out multi-family. It can be anyway, you offset your housing expense with income from the situation. In your situation, it is cost savings renting, which you explained makes a big deal in your quality of life. You get to live in your ideal location with 5 star amenities! 

The awesome thing about "house hacking" is the ability to get creative and mold it to the situation and lifestyle that you want. 

Also, it is very cool you've got to host so many different types of guests and actually enjoy the experience. It isn't for everyone, but sometimes being a great host IS. It clearly is for you! 

Thanks for sharing this :)

[Jennie Berger]

@Anthony Swain YES EXACTLY! Great insight. Thank you for your feedback!