‘Boom-mates’ find niche in housing crisis
Millennials renting from boomers is a trend, but some express caution
BELLINGHAM,WASH.— As housing prices in western Washington continue to soar, some Bellingham millennials have saved money by becoming “boom-mates” with empty-nest couples with space to rent.
Research by the real estate firm Trulia could put this trend at the cutting edge of a way to ease the housing crunch in Whatcom County.
“I used to do this for a few years,” said Michael Godwin of Bellingham. “I rented a mother-in-law suite from an older couple whose kids were old enough to be out of the house.”
Godwin said he paid about $550 a month including utilities for a room in the Geneva-sudden Valley area from 2013-2016.
“It was the cheapest way for me to live by myself,” Godwin said. “Had I opted for an apartment with roommates, it probably would have been overall cheaper if the cost was split. But at the time I wanted my own place.”
Average rent for a one-bedroom apartment in Bellingham was $969 in July, up from $688 in June 2012, according to Rent Jungle. Zillow lists an overall average rent of $1,700 monthly in June 2017, up from $1,278 monthly in February 2012.
Stephanie Allen of Bellingham, a graduate student in library science who’s just getting started on a career For retired or soon-to-retire boomers, extra rooms are an opportunity to supplement income and offset cost-ofliving increases — as much as an additional $14,000 a year. in education, found her basement studio apartment on Craigslist.
“I have my own entrance to the unit, and my landlord lives upstairs,” Allen said. “My current landlord is very responsive to things like maintenance requests, and she also checks in with me regularly to make sure nothing needs to be fixed. In the past, it’s usually been difficult to get anything fixed, so this has been a nice change.”
On the Trulia website, company researcher Cameron Simons found that tens of thousands of homes across the United States have nearly 3.6 million unoccupied rooms that could be rented out. Trulia’s “Room For Rent Report” of the largest U.S. markets cited an annual renter savings of $7,979.40 for Seattle and an extra income for landlords of $10,620.60. According to Trulia, an estimated 3.8 percent of Seattle homes have an unused spare bedroom, for a total of 58,770 spare rooms.
“For retired or soon-to-retire boomers, extra rooms are an opportunity to supplement income and offset cost-of-living increases — as much as an additional $14,000 a year. Renting a room provides an economic boost that may help them stay in a home longer,” the report states.
The “boom-mates” relationship can benefit both the landlord and tenant, said Tom Follis, a real estate appraiser and broker in Bellingham, but it’s not always legal. There can be zoning limits on number of unrelated people who can live at an address, he said. Older homeowners could fall victim to crime if a tenant knowingly or unwittingly allows access to the homeowner’s living area, he said.
Godwin said he liked the casual aspect of his rental arrangement and the relatively quiet surroundings, but missed an active social scene.
“It was also nice being able to email my landlord and ask for an extension on rent when I was supporting myself mostly with gigs and scarce hours from my job at the time,” Godwin said. “(But) it got lonely, and I ended up spending more time out of my place than in. And when the internet went down, I couldn’t just go reset the router (it was in the main house, I didn’t have ready access to it).”