Although my kids (ages 19 and 21) have both moved out of our home, I have friends and clients who have children that still live at home. I find this interesting in that I know most of my generation couldn't wait to get out of their parents' home!
The Housing Finance Policy Center just funded a study of "Young Adults Living in Their Parents' Basements" to look at the issue and what impact it might have on long-term homeownership.
The results were interesting. They found that the number of young adults ages 25 to 34 living with their parents increased from 11.9 percent in 2000 to 22 percent in 2017. Increases in rent and student debt were sited as contributing factors.
And how did this impact homeownership?
According to the study, "Young adults who stayed with their parents between ages 25 and 34 were less likely to form independent households and become homeowners 10 years later than those who made an earlier departure. Even if they did ultimately buy a home, young adults who stayed with their parents longer did not buy more expensive homes or have lower mortgage debts than did young adults who moved out earlier, suggesting that living with parents does not better position young adults for homeownership, a critical source of future wealth, and may have negative long-term consequences for independent household formation."
I am not sure I like what this means for home sales in the future. To read the entire article click here.
