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.
I see this.
Take a typical young adult first starting out.
Wages have been very stagnant, and housing inflation has been high.
At what wage/salary can a young person support themselves with safe housing, a means of transportation, and food?
Add in student loans (often more than housing costs), and then what?
This site is older. Most here are closer to retirement than starting out. The reason this is happening is stuff is way out of wack.
Now, the other issue is “Where is all the housing going?” Well, a lot of houses are bought up by financial institutions. Some are then provided to lower income people, some are used by family members of those institutions, some just sit there. Normally a landlord would want to rent them out, but with big institutions owning them they view it differently.
We have a lot of anger among young adults who are priced out of having a middle class life and see no way of ever being able to achieve it. We ignore it at our peril.
What year did I turn 18? 1987
its helpful to older parents to have someone around and chip in for groceries and utilities, etc and it helps the younger person save money for future marriage and a home.....
Yes, you got me by 6 years. Things are worse off now in multiple ways.
I wouldn’t want to be 18-25 now. I think things are just about to get worse too.
dtr....pregnant before marriage....
3 sons basically went off to the service....
there was no talk of college....just get out....
it wasn't done to increase the kids chances at life, it was done to get rid of them as fast the parents could....
thus, there is not a lot of real love even today.....
there were no first cars, or helping get into college or anything constructive or helpful..
My old mans son (me) at 18... “I”m outta here!”
It was bred into me to seek my own fortune. Thanks pop!
I can almost hear the liberals saying...
you will move back in with you parents and LOVE it!
people often forget about inflation and how it affects the cost of everything.
Under “ideal” inflation conditions (the fed shoots for 3%) the price of everything doubles about every 20 years.
So for someone like me 40 years removed from my teens, something that cost $5,000 then would have doubled to $10,000 by 2000 and then doubled again to $20,000 now in the 2020’s.
So yeah... if you are thinking you are going to go pick up a car for $5,000 like you did when you were a teen, you shouldn’t be surprised when you see the $20,000+ price tag. That’s just simple inflation.
Remember all those millenials voting for Biden and Democrats.
How’s that working out for ya?
Never heard from mine again! Which was fine since did not want guys hitting on me.
100% of Antifa are living with mom and dad.
We have a lot of anger among young adults who are priced out of having a middle class life and see no way of ever being able to achieve it. We ignore it at our peril.
I agree about people being globally angry but the people running things could care less. Until the normals are willing to invest in organizing a civil disobedience movement we will just be screwed ove rand over again. I don’r see any kind of organizing coming so it will be interesting to see if there ever is any pushback even when ‘kill whitey’ becomes a real movement.
Actually - actual degrees in that subject would be an improvement over what some people are studying. Do they even teach English Lit anymore? Saw an article some time ago that many universities were dropping it because the works were done primarily by white men and replacing them with courses in “sexuality studies.”
Perhaps if they saved money for a down payment on a house or condo, they would not be in this predicament. Instead, they opt for beer, maryjane, tattoos and piercings.
I graduated in 1973, I received a car a $300.00 dodge dart, was told go to school and get a part time job. Back in those days JC was free, just books and fees. I lived at home till 21 and moved out.
And surely the high cost of living has anything to do with millions of illegal aliens getting free housing from charities and government funded NGOs.
It can work.
I lived at home until I got married.
During that time I worked a full time day job, paid room and board, helped around the house, did my own laundry, had my own car, was going back to college at night school working on finishing up my degree, was active in church, and traveled as I wished.
I respected my parents rules, and honestly, home was a place to eat, shower, and sleep and I knew I could not have lived anywhere else so cheap.
Additionally, it meant there was always someone coming and going and when they went on vacations, they knew someone was home keeping an eye on things.
On one trip they made, my brother and I finished tiling the back hall for them as a surprise when they got back. There were barely enough tiles to make it work and we knew my dad would never have the patience for it, so we did it the week they were gone.
There is nothing inherently wrong with an adult child living at home. It can be a great arrangement when you have people who are responsible enough to make it work.
“Child” support past 18 is such a racket!
You’re a good son. I took care of my Dad for 12 years - dementia, then cancer. No fun for anyone, but I was glad to be there for him.
“Didn’t ‘Young Adults’ vote overwhelmingly for Biden?”
That’s what the Enemy Media is telling us.
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