Higher Rents Can Force Some Boomers to Move In With Their Children

October 19, 2015

MarketWatch reports that rising rents aren’t only forcing some Millennials to stay in their parents' basement; they could also force some boomers to move in with their children.

Data from Real Property Management, a Utah-based property management company, shows that the average rent for a three-bedroom single-family home in the U.S. was $1,369 in the third quarter of 2015, a 5.7 percent increase over the last year.

Meanwhile, workers 55 and over have saved only $150,300 for retirement on average. Assuming they will withdraw 4 percent of their savings per year for retirement income, these Boomers will have $500 from savings along with their Social Security, for about $1,791 a month (from latest Social Security figures).

With these numbers, the average Boomer will have to pay well above the recommended 34 to 38 percent of income for renting a three-bedroom home.

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