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Home»Economic News»The Share Of Young Adults Living With Parents Is The Highest Since 1940
Economic News

The Share Of Young Adults Living With Parents Is The Highest Since 1940

July 29, 2024No Comments2 Mins Read
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This article was written by Mike Shedlock via MishTalk.com,

With housing affordability on the decline, an increasing number of Americans are choosing to live with their parents well into adulthood.

Living With Parents

A recent analysis by Chris Salviati at Apartment List reveals that the percentage of young adults living with their parents is currently at its highest level since 1940.

Historically, the share of 25 to 35 year-olds living at home has followed a U-shaped trend. In the 1940s, around 17 percent of young adults lived with their parents, but this number decreased significantly as economic conditions improved. However, from 1980 onwards, the trend reversed, with more young adults opting to stay at home. As of 2022, 17 percent of young adults in the U.S. live with their parents, a rate that has not been seen since 1940.

Financial Constraints

The analysis also shows that a significant portion of young adults living with their parents cannot afford to move out. Rising housing costs have made it increasingly difficult for them to find affordable accommodation.

Even College Graduates are Affected

The trend of living with parents is not limited to those without a college education. In 2022, 12 percent of college graduates aged 25 to 35 lived with their parents, compared to just 6 percent in 1980.

Economic Impact

The data presented in the analysis is not surprising given the current economic climate. It is likely that the percentage of young adults living with their parents will continue to rise in the coming years.

Additionally, the analysis highlights the impact of rising rents on young adults, with rent prices increasing significantly over the past few years.

Conclusion

The analysis sheds light on the challenges faced by young adults in today’s economy, particularly in terms of housing affordability and financial independence. As economic conditions continue to evolve, it is crucial to monitor these trends and their implications on society as a whole.

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