The last five years have affected the real estate market in many ways, one has been the number of young adults still living with mom and dad. One might wonder what all has played a role in this “failure to launch” syndrome and at what point has one overstayed their welcome. Just how long is too long to live at home with mom and dad?
Coldwell Banker surveyed over 2000 Americans on exactly that question. The study showed that of young adults from the ages of 18-34, known as ‘millennials,’ the over whelming response from parents was that 5 years after finishing college is the limit.
However, 24% of parents didn’t want to put a limit on how long their children could stay at home.
Robi Ludwig, a psychotherapist that worked with Coldwell Banker on this survey, says the reasons for this prolonged behavior are unique but make sense; “Some of these millennials are coming out and have huge college loans. And also the jobs being offered out there are very often temp jobs and part-time jobs.”
Ludwig compares age 27 to be the new 18…
Other sources like Pew Research Center revealed that the number of young adults living at home between the ages of 18-31 account for a 32% increase in 2012 compared to 2007. Likewise, that millennial males were more likely to live with mom and dad than millennial females (40%-32%).
Trulia did their own research, finding that young adults from ages 18-34 account for what they call, ‘missing households,’ Americans who would either own or rent homes in the market place. One can see how a weak job market and mounds of college debt can affect the real estate market, especially for this particular age group, due to reduced discretionary income.
Jed Kolko, chief economist for Trulia says, “Household formation is the most important indicator of the housing recovery that isn’t making great strides.”
So, it begs the question, will the 24% of millenials still at home ever get nudged out of mom and dad’s home?
Thank you, we'll be in touch!