This year, 31.1 percent of 18-34 year-olds lived with their parents, down slightly from 31.2 in 2013 and from the peak of 31.6 percent in 2012.
What might be good for parents of boomerang children has, thus far, not been as good for the housing market. More Millennials “ever so slowly,” are moving out of their parents’ home, a new Trulia real estate market trends report finds. But the young adult homeownership rate has actually dipped in 2014.
This year, 31.1 percent of 18-34 year-olds lived with their parents, down slightly from 31.2 in 2013 and from the peak of 31.6 percent in 2012. But the headship rate—the percentage of adults who head a household either as an owner or renter—fell for Millennials in 2014 from 36.9 percent last year to 36.6 percent.
Where are Millennials going once their leave their parents’ home. According to the Trulia report, there is an increase in the percentage of young adults living in households headed by their siblings or other relatives.
The Great Recession drove many Millennials to their parents’ homes as they waited for the job market to improve. One study found that more than half of college graduates were either unemployed or under-employed in fields not related to their major. Data released to MarketWatch by the Georgetown University Center on Education and the Workforce found that 40 percent of unemployed workers are Millennials. The unemployment rate for 18-29 year-olds in August was 10.1 percent compared to the national unemployment rate of 6.1 percent.
As for living at home with their parents, several surveys have found a “not that there’s anything wrong with that” Millennial mindset. A 2013 Coldwell Banker survey of 2,000 Americans found that young adults ages 18 through 34 thought it acceptable to live with parents for up to five years after college (Baby boomers ages 55 and up, on the other hand, would pull the welcome mat after year four, the survey found).
The housing market is still struggling to recover (existing home sales unexpectedly dipped 1.8 percent in August after four consecutive months of gains, the National Association of Realtors reported Monday) and this is not helped by Millennials decision to delay home ownership. With the headship rate falling, “that means the true homeownership rate—the percentage of young adults who own homes—has fallen…to a new low of 13.2 percent,” Trulia reports.
But these aren’t the only changes in living arrangements. There are Boomerang Boomers as well. Trulia reports that the percentage of 55-64 year-olds living in household headed by their children or other relatives has also gone up. Trulia attributes this to demographic shifts and not the recession.
Donald Liebenson writes news and features for Millionaire Corner. He has been published in the Chicago Tribune, The Chicago Sun-Times, The Los Angeles Times, Fiscal Times, Entertainment Weekly, Huffington Post, and other outlets. He has also served as a marketing writer for Chicago-based Questar Entertainment and distributor Baker & Taylor.
A graduate of the University of Southern California, he is married with a college-age son. He also writes extensively about entertainment.