More than a third of American Millennials are living at home with their parents, according to a Pew Research Center study
When the recession began in 2007, 32 percent or 18.5 million of Millennials—defined as 18- to 34-year olds—had not left the nest.
2014 ----- It is 36 percent, or 21.6 million are living AT HOME!
According to Pew's analysis of U.S. Census Bureau data, the number of Millennials still living at home is the highest percentage in 40 years.
A driving factor: Declining employment. Last year (2013) just 63 percent of young adults in that age group were employed, down from 70 percent in 2007.
An analysis by USA Today of Census
Bureau data found that between 2005 and 2011,
25- to 34-year-olds experienced the
largest drop in homeownership of any age group
According to the Pew Research Center - As
of March 2013, only about one-in-three Millennials (34%) headed up their own
household. In 2009, 35% of 18- to 32-year-olds headed their own
households
The absence of any increase in household
formations among Millennials is significant because it contributes to
lackluster apartment and housing demand as well as the demand for household
furnishings, etc. that goes along with independent living.
In
2013, Pew said the average Millennial with a bachelor's degree earned $45,500.
With
their average salary of $45,000 and even with some debt, most Millennials could
afford to purchase a home under $200,000 and manage a monthly mortgage payment with
the TODAY’S interest rates.
Unfortunately,
home prices are rising and interest rates will also be rising much faster than
their income. Their most significant hurdle is the down payment --- cash needed
to close! I believe housing will leave this generation behind even more so than
their desire NOT to own a home.
If
our economy is 70% consumer spending and our most significant purchase is a
home, the future for housing is even more troubling if the Millennials are not thinking
a home is more than just shelter
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