A recent study by the Pew Research Center, finds that millennials, age 18-34, are more likely to return home to live with their parents than to set up their own independent households. The study shows that early in 2015, 42.2 million (67%) of millennials lived independently compared to 42.7 million (71%) in 2007. And that population has grown by 3 million in less than a decade. The not so good news is that this trend has a negative effect on the housing market, considering that the spending associated with forming a household is restrained.
One of the main factors in hindering independent living is student loan. Although college educated millennials are more likely to live independently than high school graduates. This time around, it’s not the economy as full-time employment and wages have increased so other restraints might include, raising rents and the changing attitudes regarding moving back home to live with the parents.
Source: “More Millennials living at home, and you can’t blame the economy” LA Times (July 29, 2015).