Posted on 01/04/2023 3:19:41 PM PST by Diana in Wisconsin
With rent prices through the roof and the housing market scaring potential buyers away, more young adults in the US are choosing to live at home instead of venturing out on their own.
According to data from the US Census Bureau, nearly half of young Americans between the ages of 18 and 29 are not living on their own but with their parents.
With rent prices through the roof and the housing market scaring potential buyers away, more young adults in the US are choosing to live at home instead of venturing out on their own.
According to data from the US Census Bureau, nearly half of young Americans between the ages of 18 and 29 are not living on their own but with their parents.
In a Friday note, analysts from Morgan Stanley shared that the rate is the largest it’s been since the Great Depression era. Analysts estimate that close to 48% of young adults are living with their parents, similar to what was seen in the 1940s.
“We think the structural change in demographics might have been overlooked,” Morgan Stanley’s Edouard Aubin and a team of analysts wrote. “One of the key demographic trends in the US (and the broader Western market) has been the rising number of young adults living with their parents, driven by financial concerns (i.e. rental costs) as well as other sociological factors.”
In 2020 the percentage of young adults still living with their parents peaked near 49.5%, as the COVID-19 pandemic put Americans out of work and stopped many from leaving the nest, a Pew Research Center poll found at the time.
But while moving out may be bad for renters and homeowners looking to sell, it’s great for luxury retailers who can target young adults and their disposable income not being spent on necessities.
Morgan Stanley analysts noted this, saying that young adults staying home isn’t the only reason that luxury retailers are seeing a boom in business.
“This is, of course, not the only reason luxury-goods consumers are getting younger in the West (social media playing also an important part), but we see it as fundamentally positive for the industry,” the analysts wrote in the note.
Along with the price of moving out, higher prices for higher-education, delayed marriage, and more are playing a factor in young people staying at home, analysts shared.
A survey from PropertyManagement.com found that 51% of young adults view moving home as a way to “save money,” while 39% said they had to do it because rent was too expensive.
The poll also found that of those currently living with their parents, 55% moved back home within the last year, as inflation sits at a four-decade high and the price to live on your own has skyrocketed.
Even with 40% of millennials living at home reporting that they pay their parents rent, nearly half said they pay less than $500 per month. This is far below the national average for monthly rent, currently at $1,980, according to Rent.com.
"The poll also found that of those currently living with their parents, 55% moved back home within the last year, as inflation sits at a four-decade high and the price to live on your own has skyrocketed."
Let's Go, Brandon!
Sounds like investment firms must be holding tons of real estate.
Well at least we have high interest rates now and G-ma is off dog food.
That’s a big reason why California RE prices are unaffordable for anyone but hedge funds and foreign investors.
Been going on for decades, seems peaking now. See NEETs, an international issue.
All those degrees in English Lit didn’t work out.
Doubling up on housing is a big financial efficiency.
A hit to real estate and the economy to be sure, but let the ‘rat [and assist. ‘rat] overlords suffer.
“NEETs”
“DOS” [Drags on Society]
Not mine—my kids are 26, 24, 20, and 17 and only the 17 year old lives with me. And she won’t once she turns 18, except during summers/college breaks.
But I do know many parents love living with their adult kids—not me! I enjoy their company, but I love their independence.
Gotta free-up housing for the MILLIONS of illegals BaiDin is bringing over.. You know, CHINA’S FUTURE AGRICULTURAL WORK FORCE ONCE THEY STEAL OUR COUNTRY FROM US ALL FOR THEMSELVES.
Normal in a lot of countries that have high priced Real Estate. The difference in other countries the kids help with expenses.
My Old Man: “Eighteen and OUT!” He started that when I was 16. I graduated HS at 17, and moved in with two roommates after graduation.
He missed me, LOL! (”Come over for supper!”)
My Old Man: “What are you going to do with the rest of your life? You can’t work at The Mall forever!”
Me: “What do you think I SHOULD do, Dad?”
My Old Man: “How about the Military for a career? You’re a hard charger.” (He was Navy. I HATE open water!) Also, it was the 70’s. We were ALL broke and depressed thanks to Carter’s ineptitude. He didn’t have money to pay for my college education but the Army did!
I enlisted within weeks and spent my 18th birthday in Army Basic Training. I was the easiest enlistment, ever. “Sign me up!” My Recruiter sent me flowers and never missed a birthday or promotion ceremony for my entire time in the Army. ;)
I never went back home again to live. And I LOVED my parents - no problems in that area; they were great. I wasn’t ‘running’ from anything.
FREEDOM! :)
Rents are getting out of hand...AND it might just be helpful to mom and dad, too. Why do they consider living with parents as something bad??
Atomic Family is disintegratong as the industrial liberties we once enjoyed as a free people were stolen in a globalist looting of intellectual identity.
My son still lives at home, but he bought a house to fix up a year ago and expects to be done this summer.
My youngest daughter lives with her in laws. Their rent was going up dramatically when their lease renewed and she said nope and moved in with her hub’s parents. They hope to buy a house this coming year. She works in banking and has all her ducks in a row and is just biding her time for the market correction.
My other two live independently, have stem degrees and good jobs.
I laughed at the headline because it’s perfectly accurate. But I don’t see it as a negative social metric, even if it’s a negative economic metric.
It’s great that so many young people have families that they can count on. It’s better than the alternative.
Well said!
For my 18th birthday my dad gave me 90 days to move out.
“It’s great that so many young people have families that they can count on. It’s better than the alternative.”
We have a Foster Son that’s in his 40’s and STILL needs help once in a while. I don’t mind that, as he’s always accountable for what he’s doing with the money we lend him and he manages to pay us back, most of the time.
(No drug and alcohol problems; he has some mental health and physical issues he deals with. He had a horrific childhood; IMHO his ‘parents’ should be in prison!)
That said, it would take an Act of God for me to allow him to come live with us. ;)
Did you ever go back other than for Holidays and other Family Get-Togethers?
Rents are “thru the roof,” while young adults are living with their parents?
The above statement raises another question: How can landlords possibly absorb the cost of vacant rental property while eager renters are standing by?
I think we’re seeing a load of BS from a blog.
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