NEWS: 22% of Millennials Still Live with Parents
MBA NewsLink Staff
May 10, 2018
More people age 23-37 are living with their parents than at any time this century, said Zillow Inc., Seattle. Nearly 22% of American millennials–more than 14 million in total–live with a parent or both parents, the highest share for this age group since at least 2000.
Zillow said the share of young adults living with parents has increased steadily since 2001, more than doubling from 6.8 million (11.7%) to 14.3 million (21.9%). The highest share of millennials living with their moms are in Riverside, Miami, Los Angeles and New York, which are all among the least affordable rental markets in the country. Seattle, Austin, Portland, Kansas City and Denver have the smallest shares.
Zillow Senior Economist Sarah Mikhitarian said while the economy has recovered since the housing bust and recession of the mid-2000s, young people living with their parents has continued to rise, even as the share of those living at home that are unemployed has fallen to 10.3% from 19.5% in 2010, indicating that more young people are struggling to afford independent housing even while holding a job.
“While it might be tempting to stereotype these young adults as lazy Millennials bumming off of mom, the data paints a different picture,” Mikhitarian said. “When the housing market went bust and the economy unraveled into a recession, young adults increasingly returned to their childhood home. And, despite a strong labor market and fairly robust economic recovery, this trend has continued in the face of rising housing costs and deteriorating affordability.
Zillow noted rents are on the rise; the median monthly rent price in the U.S. is $1,474, up 2.5% from a year earlier, according to the Zillow Rent Index. Zillow predicts rents will rise an additional 1.8% in the coming year and reach the $1,500 threshold.
Mikhitarian said rising rents bring present-day affordability challenges for those looking to rent and long-term difficulties in saving for a down payment on a first home. Recent Zillow research found today’s renters need an extra year and a half to save for a down payment than their parents’ generation 30 years earlier.
Among large housing markets, at least 31% of Millennials live with parents in Riverside, Miami, Los Angeles and New York; these four metros are all among the seven least affordable rental markets in the country.
“Living with mom as an adult can certainly bring its share of headaches, but the benefits go beyond the occasional home-cooked meal–living under mom’s roof can allow young adults to save enough money for a down payment, security deposit or some other big expense,” Mikhitarian said.
