The Amount of Millennials Living With Their Parents Grows to a 75 Year High
Even though 47% of Americans haven’t been able to update their home decor within the last five years, it looks as if some homeowners have to wait even longer to spruce up their home because their kids are moving back in droves.
In fact, the percentage of young Millennials that are moving in with their parents have reached a 75-year high. In total, about 40% of those between 18 and 34 are living with their parents, which is the largest percentage since 1940.
This percentage has been rising for the past 11 years and is the direct result of wavering economic cycles, high rents, and mortgage standards that are almost impossible to meet as a young professional. Plus, considering the high cost of simply moving, and it is no wonder why Millennials are headed back into their childhood bedrooms.
Back in 1940, the nation was reeling from the Great Depression and was involved in World War II. Nowadays, Millennials are facing similar economic challenges as they are earning less, and are bogged down by crippling student debt.
To put this number in perspective, according to the Institute of College Access and Success, the average undergraduate has $30,100 in student loan debt in 2016, which is an increase of 53% in 10 years.
The last decade has posed a bunch of problems for America’s youngest generation, as they were growing up and trying to establish themselves in a nation that was characterized by an economic recession, tight credit margins, and high unemployment rates.
So why are Millennials still facing challenges when the economy has is on an upturn?
“Even though unemployment rates have decreased and the economy is picking up, we know wages are stagnant, so this will impact this generation of homebuyers,” making it more challenging to save for a down payment, said Cheryl Young, senior economist at Trulia explains to CBS. “The millennials are getting married later and having fewer children, and that’s particular to this generation.”
Parents hoping that their adult children will leave the nest soon are probably out of luck. Before the Great Recession, about 43% of Americans under the age of 35 owned a home, compared to just 35% today. And according to CBS, the declines in home ownership were highest among low-income and single Millennials, the most likely to live with mom and dad.