Older generations aren’t as fond of millennials as millennials are of themselves, but sharing space with them could be in older homeowners’ benefit, according to a recent report by Trulia, especially in light of continued shrinking inventory.
The report, entitled Boom-mates, looked at houses in the largest markets in the country to find out the number of houses that had two more rooms than occupants, and then presented the idea that Baby Boomers on the verge of retirement—or already retired—can supplement their income by renting out their extra room to millennials.
Under this cooperative living, Baby Boomers could make an average of $14,000 a year. For millennials, renting a room instead of a one-bedroom house could save them on average $24,000 per year.
Some cities fare better than others when it comes to the savings that multigenerational roommates will experience. Washington D.C. had the most homes with spare rooms—over 5.6 percent of all homes in the metro. It is estimated that renting out a spare room could net the homeowner an additional $941 a month.
Boston, Cambridge, New York, Oakland, and San Francisco were the most profitable places to rent out a room. San Francisco was the clear winner, boasting an additional annual income of $22,000 a year, or $1,800 per month. Renters in San Francisco can save $14,220 per year by renting a room instead of a one-bedroom apartment, which average $3,000 a month.
Unsurprisingly, renters and homeowners in New York City could save a substantial amount of money as well—second out of all the metros listed. Whereas estimated rent for a one-bedroom apartment would run a renter around $1,800 a month, estimated monthly rent for a single room would only cost around $867, saving about $11,189 annually.