This Mother’s Day, many millennials didn’t have to travel far to celebrate with their mothers.
About 22.4 percent of millennials — ages 24-36-years-old — live with their mothers, amounting to about 12.3 million young adults, according to a report by Zillow. That’s up from 13.4 percent in 2005.
“The trend of more millennials living under mom’s roof (or mom and dad’s – the analysis includes households where two parents could be present, as long as the mom is) holds in many large U.S. markets as well, including the largest 35,” Zillow reports. “Predictably, the share of young adults unable or unwilling to flee the nest increased during the housing bust and economic downturn, as they graduated into a weak economy where jobs were difficult to obtain.”
There’s a number of factors that could contribute to this, however the cause isn’t certain. Zillow states that the unemployment rate for millennials still living with mom decreased to 11.4 percent in 2016 from 20.4 percent in 2010. This would indicate that a strong labor market may make it easier to leave home. However there has been an increase of millennials living with mom from 2010 to 2016 — up about 3.9 percent. Zillow accounts the economic recession and housing bust for these increases.
One indicator suggests that more young adults living with mom are staying in places with unaffordable rents such as Miami, New York and Los Angeles. In these cities, Zillow reported that about 30 percent of millennials were living with their moms.
“The median rent in these areas would have forced the typical household to spend upwards of 35 percent of their income,” Zillow reports.
Business Insider reported that other factors include student loan debt and high housing costs contributing to more millennials opting to live with their parents than go out on their own. “Living at home gives millennials more time to tuck some money away and focus on long-term goals,” Doyle Williams, executive vice president at Country Financial, said in a press release.
USA Today reported that although millennials do want to get out and hack it on their own, seven in 10 adults ages 18-24 still received some sort of financial support from their parents in the last year. “Three in five millennials said they couldn’t afford their lifestyles without the support,” USA today reported.
USA Today also noted that the average credit card balance is $3,700 among those with card debt, and more than half are struggling to pay it off, according to the Survey of Consumer Finances.
“One in four young adults withdrew early from their 401(k) – in many cases to cover credit card debt,” a survey by Merrill Lynche/Age Wave suggests.
In many cases, most millennials getting out in the workforce have more than one job to cover living expenses or live with their parents to save money to be able to get out. Whatever the case, millennials will soon be the largest age group in the workforce. With this is mind, upper level job opportunities may open up for those considering moving out!
To see a full report and graphs, visit Zillow.
Sources: Zillow, Business Insider, USA Today