As housing market challenges intensify, experts warn, "If you're a parent of a Generation Z child, get used to the idea of them living in your house for a while."

With interest rates and other costs associated with mortgages soaring, the path to homeownership for first-time buyers has become even more difficult.

Mitch Roschelle, Managing Director of Artefacts at Madison Ventures+, believes that now is the worst time of the year, with interest rates on buttress loans at their highest point since last November. He expressed his concerns in an interview with the Fox Business Channel's "Varney & Co."

The average interest rate on a 30-year fixed mortgage is 7.3751 TP3T, and Roschelle expects these rates to rise, adding to the struggles of new entrants to the housing market. He also emphasized the additional financial burdens, such as rising property taxes and insurance premiums, that add to the total cost of homeownership.

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The rising costs are not just a burden on renters. Landlords are under similar pressure. Rising property taxes and insurance premiums are eroding their profit margins. To keep up with these rising expenses, many landlords are raising rents. This has a knock-on effect, as tenants must adjust their budgets to cover the higher cost of housing.

"As a result, rents have continued to climb," Roschelle said.

He calls the situation a "price documentary," with rents rising by more than 5% per year, a trend that Ruschel believes could force many young people to put off plans to move out, especially those who are part of the Z-generation.

"I think if you're a parent of a Gen Z kid, you need to get used to the idea of them staying in your house for a while, because the prospect of them moving out looks pretty bleak," he said.

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A recent study by the Pew Research Center shows that less than half (45%) of adults between the ages of 18 and 34 consider themselves financially independent. A simple understanding of the economy beforehand can help explain this situation. Nearly one-third of 18-34 year olds live with at least one parent. This percentage rises among 18-24 year olds, with 57% still living at home. The traditional "sink or swim" mentality of the 18-year-olds has changed dramatically due to new economic realities. This trend is reflected in a report by the Wharton School of Business at the University of Pennsylvania, using Census data, which shows that nearly half of Americans between the ages of 18 and 29 live with their parents, the highest level since the Great Depression.

Despite the gloomy market conditions, Ruschel remains optimistic about real estate investment, emphasizing that property values are likely to rise. He advises potential buyers to readjust their expectations about the ongoing costs of rising interest rates and the total cost of maintaining a home.

Reports that housing affordability has fallen to its lowest level in 40 years underscore the severity of the real estate environment in the past.

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This article, "As Housing Market Challenges Worsen, Experts Warn: 'If You're a Parent of a Gen Z Kid, Get Used to Them Living in Your House for a While'" originally appeared on Benzinga.com.

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