According to a recent report published by Pew Research, it was found that more millennials are living at home with their parents than they were five years ago. To come to this conclusion, Pew synthesized U.S. Census Bureau data from 2010 to 2015.
“The surprise is here we all thought the job market mattered but five years in, there seems to be other factors [effecting household creation]” said Richard Fry, Senior Researcher at Pew Research Center. Given that millennial unemployment rate has dropped from 12.4 percent to 7.7 percent, Fry was surprised to find that more young adults are living with parents than they were in 2010. Why has an increased amount of employment resulted in more millennials staying home?
“Young people have more debt, a higher cost of living, and stagnant relative wages,” said Luke Delorme, Research Fellow at the American Institute for Economic Research.
“My suspicion is that I think there has been a change in attitude both on the part of parents of young adults as well as the young adults themselves about this living arrangements,” Fry noted.
When measuring if a millennial is in their own residence, it doesn’t matter whether they are renting or owning. This obviously isn’t happening with more millennials living at home with their parents, and that’s the problem. Experts say that the nation’s housing industry is in dire need of more young adult households to boost the market, and ultimately give the entire economy a boost.
It will be interesting to see further research on this topic to get to the bottom of the question: why are more millennials staying home?