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.
What if they had a depression, but it ‘kind of” looked different and you had a state controlled media, so no one talked about it?
It’d feel the same out there, but the politicians would like it better…
The freeloaders love it and plan to continue voting for President Retard
Probably a good trend in general.
When I was 42 I sold a home in Middleton WI and spent about 2.5 weeks (between the physical move out and the closing) at my parents’ house in the Milwaukee area before moving to Atlanta. In addition to the weirdness of living in a house I had not been in for more than 2 consecutive days in two decades, and the shock of being around retired, elderly parents, it just about broke me. Good luck to you young folk trying this experience. You’re going to need it.
Parents getting rent money must claim on taxes!!! Fer Sure.
They can’t afford the car they’d need to get past the driveway so they’re stuck there.
Cash for clunkers got rid of what would’ve been old cheap cars for self starters.
Regulation makes the newer ones too expensive.
When I left the military I had 90 days of terminal leave. I went back home and stayed with my folks to job hunt for part of that time then moved 1200 miles away for the next 20 years. Then there things happened in close coincidence in late 2019/early 2020. My dad started the early stages of dementia, I left my job and COVID hit. I moved back with my family and we got to spend my dad's last year with him. While there, my former employer asked me to come back and I worked it remote and we were able to help my mom out through my dad's final months. We were there for about a year and then moved away again...but only about 750 miles this time :)
Didn’t “Young Adults” vote overwhelmingly for Biden?
Hmmm Hubby’s last kid of 3 turned 20 today. No idea if he is living with Mommy or not but we still have another year of “child” support (goes to 21 here in NYS but they can vote at 18, 19, 20.)
Oh yeah, I moved out right after college.
I did move back in for ~9 months a year later when I got a nearby job [at a Defense Plant], but after that was forever gone.
“Old Economy Steve” has to understand that housing and automobiles are not the bargain they were in his day. Only high school or college kids with cars have parents who buy them. Besides there is always Uber.
Not too long ago I could buy a decent beater for 3 grand, put another $1000 in parts, and have a solid car to give to grandkids. Now those are more like 5000 bucks.
Title says they are living at home”. Where else would they live? Their parent’s home perhaps?
I wouldn’t want to live with a 40 something child either. I’ll be pushing 80 and it’s more likely that I would be living with them.
I hope to drop dead unexpectedly rather than a long degeneration of health and mental decline.
By September 1, I had to
Enlist, enrolled, or employed. But out of the house
A great many “small” landlords have sold out to corporate or institutional investors because legislatures have made being a landlord too difficult with excessive renter protections.
Depends on the reason for it.
Multigenerational homes were normal for my hubby’s family. But in that case the youngers moved in with the elders to take care of them.
I could see multigenerational working again, especially when you consider how huge homes are these days.
But I can’t see it going well if the youngers have been infantilized.
Parents should kick there asses out... emptiness syndrome is awesome !!
Same here. Moved back home while burning some terminal leave. Lived home for one semester of college and moved at the end of the first semester. Paid rent during my stay and got to know my parents better after being away for several years. It was a good time.
What year?
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