👴🏼 Older Adults Moving in With 'Boommates' 🧓🏼

Boommates: Older Adults Opting for Shared Housing to Offset Rising Costs
Due to increasing taxes, insurance, and mortgage expenses, retirement-aged adults are increasingly turning to shared housing arrangements, now dubbed “boommates.” This trend is growing among older adults, as high housing costs push them toward alternative solutions.
With the rising cost of living, more adults aged 65+ are looking to reduce expenses by sharing housing. Harvard University’s Joint Center for Housing Studies reveals that nearly 1 million people aged 65 and over now live with unrelated roommates. Websites like SpareRoom are seeing a spike in older users, with one in four roommates in the U.S. now aged 45 or above. This number has more than doubled over the last decade.
As of 2021, over 11 million older Americans were considered “cost-burdened,” spending more than 30% of their income on housing. Housing-related costs, such as property taxes, mortgage payments, and utilities, have surged, causing many to seek cost-effective solutions like shared living. Jamie Battmer, Chief Investment Officer at Creative Planning, said, “We’ve seen a notable rise in housing costs, forcing retirees to either cut back or find ways to share these expenses.”
The Rise of Tiny Homes in America: A New Take on Affordable Living
As home prices continue to soar, Americans are embracing the growing trend of tiny homes - compact living spaces under 500 square feet. According to a report by Investment Property Exchange Services (IPX1031), 73% of Americans would consider living in a tiny home, driven largely by financial reasons. These homes are a budget-friendly option for people looking to cut costs, reduce their environmental footprint, and live more sustainably.
Tiny Homes are defined as dwellings under 400-500 square feet, depending on different standards. RubyHome estimates there are about 10,000 tiny homes in the U.S., accounting for just 0.36% of all residential listings. Unlike mobile homes or trailers, some tiny homes have permanent foundations, offering a more stable lifestyle, while mobile ones provide flexibility for those who value freedom of movement.
The financial benefits are a major draw. On average, a tiny home costs around $67,000, making them 87% cheaper than standard houses. This affordability is especially appealing to Gen Z, millennials, and first-time buyers who are priced out of the traditional housing market. Sky-high interest rates are also pushing over 50% of American consumers to explore options like container homes, converted vans, and tiny houses.
Why Tiny Living is Becoming the New American Dream
In addition to being financially practical, tiny homes offer a sustainable solution for those looking to reduce their carbon footprint. They consume less energy and result in lower utility bills, making them a popular choice for eco-conscious individuals. These homes provide financial freedom, attract young professionals, and are ideal for digital nomads who crave flexibility.
Interest in alternative housing options continues to rise. A recent IPX1031 study revealed that 65% of Americans would consider buying a tiny home for financial reasons, and 86% view them as good investments. The top states for tiny homes include Vermont, Alaska, and Wyoming, where these compact homes are popular for both primary residences and vacation rentals through platforms like Airbnb and VRBO.
This trend shows no signs of slowing down, with more Americans opting for affordable housing that offers flexibility and a simpler, more efficient way of life.