A record number of young adults are continuing to live at home with their parents. One of the reasons might be because many millennials are delaying marriage, which generally serves as a reason to move out. Additionally, the economy can also be blamed for this phenomenon. A large number of millennials are delaying finding a salary job, and they are instead content with part time positions. With slow wage growth and scary student loans, it’s no surprise that young people want to take things slow.
It used to be that if you graduated college, even with only a bachelors, a pretty cozy job would be waiting for you at the end. Nowadays, it’s not like a college degree will lead to some magical big payday. Not only that, but students sometimes make poor decisions when picking a major, which can be useless after graduation. Young people would rather avoid all of that and simply work part time for some extra spending money while they live rent-free with their folks.
One study conducted by the Pew Research Center in Washington DC a few months ago found that 36.4% of American women between the ages of 18 and 34 are still living with their parents. On Monday, the Commerce Department revealed that 31.5% of all 18 to 34 year olds are living with mom and dad. It was also discovered that America currently has its highest ever percentage of 25 to 34 year olds still not fully supporting themselves.
According to independent economist and senior fellow at the Terner Center for Housing Innovation at the University of California at Berkeley, Jed Kolko, the delaying of marriage is a big part of this trend. Unmarried people are generally more likely to live at home than married couples. Once a person is married and has children to support, living at home with mom and dad seems childish. But until that day comes, living rent-free is a secure alternative.
Of course, others are blaming the trend on an unfavorable housing market and a weak labor market. Even tiny living spaces can include outrageously high rent. With most young college graduates crippled by student loan debt, it’s no wonder that millennials cannot yet afford to live on their own.
Until young people start earning higher wages like their older counterparts, it seems we will continue to have about one-third of all young adults in America continuing to live at home.
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