"Boommates": Inflation Sparks A New Real Estate Trend

A new real estate trend called "Boommates" has taken hold, in which older Americans fight the ravages of inflation by taking in peer-group roommates. The term comes from combining the terms "roommates" and "Boomers," as in the Baby Boomer generation.

Harvard University's Joint Center for Housing Studies says that nearly one million people age 65 and over are now living with unrelated roommates. Large real estate-oriented websites like spareroom.com that find rooms and roommates for people are noticing a significant rise in older users.

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The two youngest generations aren't the only ones to feel the pinch of sharply increasing rents, food and gasoline within the past three years. As bad as it has been for Gen Z and Millennials, older Americans living on fixed incomes are finding it more difficult than ever to stay ahead of rising costs. Senior homeowners are finding they can generate additional income by renting out a spare room that's no longer needed with children long gone from the home.

Seniors may prefer to rent to other Seniors, as they're more likely to feel secure and have more in common with people their age. Widows and widowers may often feel lonely, so taking in a roommate is not just a financial decision but can also fulfill a social need.

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The same holds for those Seniors seeking a room to rent. Most are single, without a lot of money, and struggling to pay rent which is 30% higher than the pre-pandemic era. The Senior nonprofit organization, Front Porch notes that the average annual income of the room provider is just over $46,000, while the average yearly income of the housing seeker is approximately $40,000.

The Boommates trend is increasing and seems to be here to stay. Many older Americans did not prepare adequately for retirement and are finding they cannot make it on Social Security and an IRA alone. While they choose to remain in their homes, rising taxes, insurance and maintenance make doing so more difficult. However, one thing about Americans- when the going gets tough, the creative solution juices start flowing. And so, Boomers have now carved out a new trend in the real estate world.

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