High housing costs are driving some to seek untraditional living arrangements

Gary Grewal has been moving around a lot these past several years. First there was Denver. Then Chattanooga, Tenn. Then Dallas. Then Austin, Texas. Grewal’s job as a financial planner allows him the flexibility to work from anywhere, but it’s his long-time desire to buy a home that keeps him from settling — anywhere.

“Home prices are just too high right now and I refuse to overpay, or act in haste in fear of missing out,” the 33-year old said. “I also don’t want to give up the things I am looking for, and living out in the boonies on a small lot behind a highway is not happening.”

He prefers to stay with family and friends and often uses Furnished Finder, a website that offers working professionals furnished rental homes for 30 days and up.

“I’m officially a nomad,” he said.

Grewal is part of a growing club seeking alternative living arrangements given the insane housing market conditions — both the for-sale and rental markets.

“These arrangements are going beyond the conventional and leaning toward the less conventional,” said Omer Reiner, who has been buying and selling properties in Florida since 2011. “I know of many divorcing couples who are living together under the same roof because it’s nearly impossible to find that second home.”

Unusual arrangements are popping up all over the country, said Rick Sharga, executive vice president of RealtyTrac, a real estate information company, “especially in some of the country’s hottest markets where the competition is fierce and the inventory is far too low to meet demand.”

Take Palm Beach, Florida, for example.

“Homes that were going for $6 million last year are now going for closer to $9 million,” said Ted Ward, a lifelong resident of southern Florida who works as a realtor associate with William Raveis. “Apartments that were $1,800 a month a year ago are now about $5,000 a month.”

Ward, 65, who has been helping clients find temporary solutions, moved in with his 92-year old mother two years ago. It was an easy decision.

“I didn’t really want to renew my lease, buying wasn’t a consideration, and she needed me there,” he said.

Ward, who says he may look for a home in the Jupiter area at some point, plans to ride things out until the housing pandemonium subsides. The problem is, that could be a while.

Home prices are still rising at a much faster clip than forecasters had initially predicted. They are now projected to rise another 11.2% this year, according to Fannie Mae. Zillow expects a 17.3% increase.

Rents, which have been rising nearly every single month since 2021, are also likely going to continue on this upward trajectory this year, said Jeff Andrews, senior market analyst at Zumper, a national rental listing platform.

“The economic conditions that drove rents up so rapidly last year are still present. This year is trending very similarly to 2021 and could end up being worse," he said. “The madness is not temporary. It’s the new reality.”

Personal Finance Journalist Vera Gibbons is a former staff writer for SmartMoney magazine and a former correspondent for Kiplinger's Personal Finance. Vera, who spent over a decade as an on air Financial Analyst for MSNBC, currently serves as co-host of the weekly nonpolitical news podcast she founded, NoPo. She lives in Palm Beach, Florida.

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