Wednesday, December 21, 2016

The Basement Generation

More adults are staying home:
The number of young adults sticking around has been increasing since 2005, according to the Wall Street Journal. Ten years ago, before the recession hit, one out of three were living with their family.

However, unlike in 1940, when the U.S. was in recovery mode following the Great Depression, younger Americans are not wanting to venture out on their own, despite the recent economic upturn:

The trend runs counter to that of previous economic cycles, when after a recession-related spike, the number of younger Americans living with relatives declined as the economy improved.

The result is that there is far less demand for housing than would be expected for the millennial generation, now the largest in U.S. history. The number of adults under age 30 has increased by 5 million over the last decade, but the number of households for that age group grew by just 200,000 over the same period, according to the Harvard Joint Center for Housing Studies.

Much of that decision to stay home, analysts say, is influenced by lofty rent costs in big cities and rigid mortgage-lending standards, which make it more difficult for young adults on limited incomes to fly solo.
In the family poorhouse?

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