We already know that, due to factors like job availability and housing affordability, Millennials enter the housing market later than any other previous generation. But a surprising number of 18 to 34 year olds aren’t just not buying their first homes, they’re still living at home.
Millennials represent the most diverse, best-educated segment of our society. They’re also the largest, making up nearly a third of the current population. But according to a recent study by ABODO, they’re also the most reluctant to leave the nest.
“This generation of 18- to 34-year-olds is more likely to be living with their parents than to be in any other living situation — such as cohabitation with a spouse or significant other, or living alone or with roommates — for the first time in more than 130 years.”
Analyzing 2015 census data from cities with populations over one million, the study estimates that a little more than 34 percent of Millennials still live at home. More than half of those are male and a disproportionate number have some post-high school education or are currently pursuing a four-year degree. Realistically, though, a four-year degree can take, on average, nearly six years to complete. This may account for some of the 22 to 25 year olds living at home.
What’s surprising is that, of Millennials living at home, nearly 30 percent of them are over the age of 26. Here’s where education becomes a factor again. Those who have boomeranged back home after college actually account for a fairly low percentage of Millennials living with their parents. Only 12 percent of those with bachelor degrees and only 2 percent of those with graduate degrees still live at home.
DFW Millennials on Par with National Averages
How do Dallas-Fort Worth Millennials compare? Well, despite relatively low Millennial unemployment rates and rents below national averages, 32 percent of Metroplex Millennials are still getting room and board from mom and dad. That’s just a tick below the national average.
So, why, if the economy is more favorable, are so many educated millennials choosing to live at home? According to ABODO, there are a host of reasons.
The problem isn’t just high rent, or just lack of education, or just unemployment, or just low pay. Often, it’s a combination. Millennials are not only earning less than their parents did as young adults, but the majority of Millennials who pursue post-secondary education also graduate saddled with an average student loan debt hovering around $30,000.
For many of these 18- to 34-year-olds, living with parents isn’t simply a lifestyle choice, but a necessity brought on by high rent prices and relatively low incomes. It’s not hard to see why moving out isn’t an attractive possibility.