Posted on 08/02/2013 7:37:04 AM PDT by SeekAndFind
In 2012, 36% of the nation’s young adults ages 18 to 31—the so-called Millennial generation—were living in their parents’ home, according to a new Pew Research Center analysis of U.S. Census Bureau data. This is the highest share in at least four decades and represents a slow but steady increase over the 32% of their same-aged counterparts who were living at home prior to the Great Recession in 2007 and the 34% doing so when it officially ended in 2009.
A record total of 21.6 million Millennials lived in their parents’ home in 2012, up from 18.5 million of their same aged counterparts in 2007. Of these, at least a third and perhaps as many as half are college students. (In the census data used for this analysis, college students who live in dormitories during the academic year are counted as living with their parents).
Younger Millennials (ages 18 to 24) are much more likely than older ones (ages 25 to 31) to be living with their parents—56% versus 16%. Since the onset of the 2007-2009 recession, both age groups have experienced a rise in this living arrangement.
The men of the Millennial generation are more likely than the women to be living with their parents—40% versus 32%—continuing a long-term gender gap in the share of young adults who do so.1
The steady rise in the share of young adults who live in their parents’ home appears to be driven by a combination of economic, educational and cultural factors. Among them:
* Declining employment. In 2012, 63% of 18- to 31-year-olds had jobs, down from the 70% of their same-aged counterparts who had jobs in 2007. In 2012, unemployed Millennials were much more likely than employed Millennials to be living with their parents (45% versus 29%).
* Rising college enrollment. In March 2012, 39% of 18- to 24-year-olds were enrolled in college, up from 35% in March 2007. Among 18 to 24 year olds, those enrolled in college were much more likely than those not in college to be living at home – 66% versus 50%.
* Declining marriage. In 2012 just 25% of Millennials were married, down from the 30% of 18- to 31-year-olds who were married in 2007. Today’s unmarried Millennials are much more likely than married Millennials to be living with their parents (47% versus 3%).
We have a situation where 40 million of 175 million potential workers, are not working.
Frankly, I’m amazed more adult children are not still living with their parents.
This ‘Happy Face’ mentality the government/media try to pass off at the reported 7.5% unemployment that everyone but the government realizes is an out and out lie, is a total sham.
A smart thing to do if the object is to be smart financially.
The sad result of socialism. You wanted your health care from Mommy until 26..hope you enjoy the basement.
I have one. My oldest at 30. He has a good job, but wastes his money. If my hubby and I could get him out of the house, we would. But it seems cruel to kick one of my children out. If he were on his own we’d be empty nesters, enjoying life again as just a “couple”. It seems too far away for us.
This is a good reminder for those who think Obama always lies. He did promise “change”, and he kept his promise.
Obamanomics.
Ages 18 to 31 are not adults?
My daughter, her husband and their newborn live with us. We renovated the house to make 2 separate sleeping/TV/bathroom areas and we share the kitchen & main living room.
The area we are in is simply too expensive for them to even look at getting a house right now, and any apartments they could afford and still try to save up would be in VERY bad areas (scary). Several of their friends (married & unmarried) are in the same situation. My S-i-L is an electrical apprentice and isn’t pulling in big bucks, but at least he has a job, a lot of their friends are laid off or on part-time now.
We actually asked them if they would like to move in, and use the time to save up for a down payment.I figure they’re here at least another couple of years. We don’t mind, they help with the cooking, household and garden chores and I get to spoil my grand-baby.
Look at the average weekly wage for the age cohort. Look at the average price of a house in America thanks to the maxim, “housing prices must never drop”
A reckoning is coming and it is coming soon.
Not until they are capable of supporting themselves.
Do yourselves and him a big favor...tell him it’s time to get his own place, so you can enjoy some privacy in yours.
I’m one of the lucky ones. I have enough work to live on my own. But, I rent a small room at an excellent price. Houses are still out of my price range and will be until I can finally get a full time teaching position. Until then I’ll just keep working and saving and following Dave Ramsey’s principles. I’m doing ok, but I could be doing a lot better..
I thought these vidiots knew everything. Guess not.
I was born in 1944, in the era and area of my youth it was considered the norm for young people to live with their parents until married but they married young. I was considered strange because I did not marry until I turned 28!
In fact by the time I was 23...yes I mean 23 I was already considered fairly hopeless because I did not already have a wife and at least one child! One sixty year old woman who had just started working where I worked actually asked me how many children I had and when I replied none she wanted to know why. I told her I thought I should be married first and she then asked my age. When I told her 23 her reply was, “You’re 23 and you’re not married? What’s wrong with you?” It is unimaginable now in a world where 18 year olds are called children and act like children.
It is really difficult for a young adult to find a stable full-time job, unless you have specialized skills. So, they have to work multiple part-time jobs.
She just leveraged a part-time job into a full-time salaried position (albeit without benefits, since it is a very small business). So, she is on her way to more stability.
Actually, the whole Capitalist model is breaking down in the United States. When that happens all bets are off.
Home shouldn’t drop in price, but then wages shouldn’t be stagnant for twenty-five years either. We shouldn’t have 22.8% of our work force out of work. We shouldn’t be allowing tens of millions of foreign workers in. We shouldn’t be moving other jobs off-shore.
We have done everything possible to cause a disconnect with what is considered to be normal capitalistic dynamics. With a stable work force, you have labor pushing up against business owner. Each push for a median that will represent them best, and keep the other side moderately happy.
In comes a wave of new workers that will work for wages that won’t sustain a family, and you move millions of other jobs off-shore, and all of a sudden you’ve got a labor force that can’t get enough employment to support traditional family situations.
This is why the housing market is why people can’t afford homes. It’s not that homes are too high priced. It’s that workers and their salaries are too devalued.
We have 40 million people out of work. We have 20 to 35 million illegals here, and we outsource jobs. And yet, this seems to carry no meaning at all with our leaders.
Few citizens pick up on it either.
I’m not living with MY mother. There isn’t enough space in her memory care room at the old folks home.
Besides, she shares a room with another resident/roommate. They wake up each morning and have to re-introduce themselves to each other.
“Officially ended” - they just keep perpetuating the lies.
Thank you for posting that. There’s so much stereotyping on this subject.
I lived with my parents in the home I was to inherit, because I loved it there and they did too, so they weren’t ready to leave until they died. Also, they wanted to avoid some taxes so they put me on the deed. Was I then “living with my parents?” in the sense commonly (mis-)understood? Then they needed some assisted living — so I assisted! I took over what they couldn’t do anymore. They didn’t want to be in nursing homes, so they stayed home and were thankful they had a grown child to take care of them. (My siblings were pretty thankful for that as well, since they didn’t want to be bothered.)
They took care of me, I took care of them, and everybody was better off for it. When did such things become contemptible?
I agree.
I tried explaining it all to family - they thought everything was not so bad.
“It’s not that homes are too high priced”
Yes, Mr. Boomer. Houses are going to fall just like any other commodity.
“Home shouldn’t drop in price”
When any commodity cannot fall in price, this is no longer market capitalism. Everything, including houses, should be regulated by supply and demand. If demand is insufficient to fill the present supply, prices should drop until demand is in equilibrium with supply.
Instead what we see is folks like you expending political capital to maintain the price of their largest investment. What this does is exacerbate the problem you see here with wages. Now you are calling for an increase in wages (presumably in relation to government action), so as to preserve the price of your asset since the government isn’t allowing proper price discovery.
This is the problem with market manipulation. One leads to another. Losses are reality. All commodities will rise and fall with changes in supply and demand. There are fewer young people than boomers, so we would expect housing to fall, all else being equal. However, since housing is artificially high in price - we will expect demand to fall even further as those who should be able to afford a house cannot thanks to folks like you.
There is so much that can be said about this. There are no simple reasons:
1. Some kids are lazy. The work ethic and idea of independence has been undermined. Kids don’t want to be adults and are happy being “adult teenagers” playing video games in their parents’ basements well into their 20s and even early 30s.
2. Some kids want to get out on their own and can’t, or realize that its smart to save money by living at home to save up to buy a house. These days houses are incredibly expensive and the only way for a young couple to get a house is to live with the parents for a while.
3. In some ways, the period of 1955 through 1995 was a historical anomaly. The country was wealthy at a level not seen before during that period and now we are reverting to a more average level of wealth. Accordingly, families are living together again like they did for most of the country’s existence.
People don’t want to believe it. I guess it’s human nature to want to believe things are okay. I don’t know how else to address it. I simply watch them complain about this and that, and at the appropriate time try to reinforce their thinking. They seem to recognize problems, but connecting the dots is impossible for them.
It’s a curse to see clearly what is taking place, and know that most people don’t get it.
The only thing disturbing about this news is this — the “some” kids you mentioned are INCREASING in numbers. I just hope “some” does not turn to “most”.
But, this isn’t fair to orphans. They have no parents to go back to live with when they lose their jobs. Congress has to do so etching about this inequality! /sarc
Damn iPad! So etching = something
Its the Socialist-European model. That’s the goal.
schmucks getting what they voted for in spades. Let them sit in Mom’s basement playing video games. My kids work and so does my granddaughter the rest of you can suck a lemon.
Not everywhere. In my area, which is fairly low in crime and taxes (but I repeat myself), there are dozens of homes under $35k and they are good solid houses. If you go to the sheriff's sale you can get one for under $5k. And they're not derelicts like in Detroit.
The problem is, young couples are often financially ignorant, and like their parents they think it's fine and dandy to carry a mortgage on their backs so they can live in a certain area and work a certain job. Lack of knowledge, and lack of imagination there.
“I have one. My oldest at 30. He has a good job, but wastes his money. If my hubby and I could get him out of the house, we would. But it seems cruel to kick one of my children out.”
No, it isn’t cruel. That fully-grown fledgling should be kicked from the nest and told to fly. In fact, you would be doing him a real favor to make him grow up and be responsible for his own life the way a man should be. Call it tough love. Do you want grandkids? What potential wife would see any future in his present state?
I grew up in a loving home, but I was eager to live independently. I left for college at 18, got a job on graduation, got married and never moved back home. That’s how it should be.
The majority today are living with their parents because they cannot find fulltime jobs anymore, especially after being laid off. Telling them to grow up and find a job is absurd in the today’s job climate and thanks to obamacare it is getting worse.
Adults living with parents is not new. In the 1800s up through the 1940s that was fairly common, check the census rolls if you don’t believe that. Wilbur and Orville Wright lived in their father’s home for many years. My mother was living with her parents during and after WWII until she married and she was not in a minority. My father lived in his mother’s house until he enlisted for the war and had to go back there to live after he was discharged. When he was called back for Korea in 1950 my mother had to live with her parents again and it was my first home when I was born because my father was still settling into his assignment in Texas.
It is not at all a good situation but the choice is frequently to let your kids and/or their families if they have one live on the street, destitute, or do you take them in? Either way it will be you or you as taxpayers who are billed to support them. Thanks to the National Socialist Democrat Party the economy is trashed and many are forced into survival mode. It happened during the depression and before that and it will probably get worse before it gets better.
The question is: how much more of this will all citizens put up with before we reach a 1776 moment? The money supply from all of us tax slaves is not going to last too much longer.
That’s until Hillary gets to run things. Then no one will have a home to live in.
It’s the 22.8% unemployment that is glossed over that causes me grave concern. If the populace were to discover and contemplate on that, there would be massive unrest.
I understand why our government is terrified.
>>When did such things become contemptible?<<
Because scenarios like yours seem to be the exception, not the rule.
From my own experience, I’ve had two step-children that needed to move back home, but not to “get back on their feet”. The plan was to mooch and leech as long as humanly possible, while not doing a solitary thing to help out. Stay up all night, sleep till noon, bum money for smokes, maybe poke around on the internet for a few minutes “job searching” before spending hours on facebook and texting friends about when/where the next party is.
That, to me, is loathsome. Your situation is not.
>>No, it isn’t cruel. That fully-grown fledgling should be kicked from the nest and told to fly. In fact, you would be doing him a real favor to make him grow up and be responsible for his own life the way a man should be. Call it tough love.<<
Bless you. Same page.
This is the root cause of many an argument between my spouse and I.
I have heard of Dave Ramsey and would be curious to know his core principles. Any advice at this point as I am trying my best to save up for a house. Pretty frustrating.
Basically - make about twice what you spend. If you don’t make enough cut spending. If you’ve cut spending and still aren’t making twice what you spend, then you need to start looking for more/better work.
Start from the very basics. What’s your current baseline rent + minimum for food. This should be no more than 25 percent of what you make. If it’s not - is it because you’re paying too much in rent? If so - relocate. Do you have a mortgage where this isn’t possible? Then add this to the basics. You’ll have to cut back in other places.
Don’t buy a house until you’ve got a full time position and have held the job (at fulltime) for a year. Otherwise rent. Rent + food should be no more than half what you make.
When you buy a house go no more than 3x your annual salary, even if you qualify for more. Get a mortgage that lets you pay it down as quickly as possible. Your first year, every single dollar you can spare, dump it into the mortgage. Every dime. Don’t take a vacation, don’t go anywhere, don’t do anything. If you’ve followed his advice, and not gotten more than 3x your income, you’ll have paid off all the interest over the term and will be able to start hammering away at the principle in year 2.
Don’t buy a house till you’ve paid off your other debts (student loans, car, credit cards, etc). He recommends paying off the debt of the smallest amount first, since he finds people are more motivated when they feel they are actually making progress. Don’t save for retirement until you’ve paid through the first two years of your mortgage.
‘In an economy that is managed properly, homes would not be too high priced”
Here’s what *you* don’t understand. Business cycles are natural. Commodities should rise and fall with demand, and yes, this includes houses too. Fewer young people means that demand drops and thus, the price of the oversupply of houses should drop. This administration is printing money to ensure this doesn’t happen - taking on increasing debt. Essentially - all the young people, your children and grandchildren are paying money so that your home doesn’t drop in price.
The drop in housing prices is a sign of a healthy economy, because it indicates the operation of true price discovery.
“I don’t think house prices are evil”
That’s because it’s your largest asset. You want the government spending other peoples money in order so that you can keep yours.
“Why are home prices under downward pressure?”
Demographics. There are fewer young people than boomers. Hence less demand for housing.
“You see, fixing home prices downwards”
It’s not about ‘fixing home prices’, its about allowing the market to actually function by permitting true price discovery. Intervention is having the effect we would expect in driving demand even further down.
“I don’t advocate the decline of property values”
You don’t believe in free markets.
“steady gainfully employed people stuck their neck out and deserve to lose their shirts”
So what you favor is pricing out gainfully employed young people from purchasing a home for their family to live, so that boomers can live in them for a few more years and sell at a profit (to whom, I might ask)?
“You think market manipulation, and immediately see housing as the big problem.”
Housing is the single largest expense for the federal government in terms of economic intervention. So yes, I’m going to criticize the policy of the government that insists that housing prices MUST.NOT.FALL.
“I am looking at the root cause of the problem and you’re focused on a symptom.”
Which is why you’ve completely ignored my point about demographics?
“Meanwhile the population kept expanding”
Again, you are ignorant of demographics. The population of boomers is greater than the population of younger folks. This means that policies which protect boomer assets will be pursued for quite some time at the expense of the (smaller), actually working-age population. Hence why houses must be protected.
“baby boomers you want to blame”
I blame their bad economic policies for exacerbating present economic difficulties. Houses are a commodity. Houses need to fall.
“And guess what, the full employment stream of tax income”
See, this is what you don’t get. You’re a socialist. You believe that the government should guarantee full employment.
“I have actually seen folks on the forum talk about doing away with Social Security, just cut it off, who cares that upwards of 40 million citizens would be homeless and starve to death in short order.”
Right now, what social security does is steal money from poorer people and gives it to people with high assets. Eliminating social security would reverse this, so that poorer young people would be able to keep their earnings.
“Now you trot in to say they investment they spent 40 years developing”
Investment, my ass. If it were an investment, then you could cancel social security instantly and boomers would recieve what they paid in.
It was never an investment. It was a ponzi scheme.
“Baby boomers didn’t cause this problem.”
Then Baby boomers have a decision to make. They can choose to perpetuate the problem or they can choose to be the solution.
“It’s not their fault that the American public was betrayed by their leaders in Washington, D. C.”
Boomers have been running the show in DC since 1992, 21 years now. When is it going to be the boomers fault for their epic economic mismanagement?
“What happens if we suddenly devalue homes by 50%? Who eats that loss?”
Homeowners won’t eat a loss. Home sellers will.
“Who supports the individual homeowner, particularly ones who are ready to retire?”
Obviously it is the proper duty of the government to protect the homeowner in his sacred ‘investment’.
“As we watch the baby boomer genration die off in short order so you can own a home, will that ease your pain?”
Right because the market economy will kill boomers.
“How about joining some of us”
I’m not a socialist who believes that the government has a duty to protect the sacred investment of a house.
“If you think housing is the key part of our economy that isn’t running according to a healthy capitalist plan, boy do you have some things to learn.”
Housing is a commodity and ought to rise and fall with supply and demand. Artificially propping up the price will ensure that homeowners are devastated once the props fall.
There is that but as you say, those are hidden and forbidden facts to the der Fuehrer and his administration.
That fact should be broadcast far and wide and it should be the initiator of mass unrest. The worthless bastards on both sides should be terrified.
Don’t go into hock. Don’t obtain a mortgage. Don’t look for a house that is THREE TIMES your yearly income. Look for one that you can buy for cash, that has low property taxes, isn’t in a bad area.
If your job isn’t making you comfortable money, you don’t need that particular job. Relocate to an area with cheaper homes.
Go to a tax sale, sheriff’s sale, foreclosure sale. Check out the for-sale-by-owner houses too.
Tax sales in my area offer good solid houses for under $5000. I personally know two people selling their homes for $15k and $25k, and they are lovely old homes. Mine was way less and over 2500sf, 3 baths, 6 bedrooms, and a 2-car garage. My income is under $10k. Property tax $350. Income tax $0.
You don’t need more debt, and a house is not necessarily a good investment, and even if it is, should you go into debt to make an investment?
Just go hunting for sensibly priced real estate. Try realtor.com, research the communities you find affordable, and look up their tax sale listings.
I am just curious, what part of the country do you live in? The prices you quote on “lovely old homes” at 15K & 25k (w/ $350 for your own property tax) seem incredibly low. Are we talking row houses in a depressed area?
Sheriff sales are good sources of low (for the neighborhood) prices but are NOT bargain basement “just pay the back taxes and it’s yours!” Usually their is a mortgage holder involved and the bargain comes in at a “short sale” which the mort holder must accept (or not).
Homes that have sat vacant w/o utilities for even a year are money pits. Rodents, mold, mildew, insects...and add in vandalism (copper pipes stripped; fixtures). “Fixing” to habitable (not enjoyable) living can be expensive.
My point in all of this is financial prudence. An affordable mtg on a SAFE, livable property, in an area where jobs are, is more reasonable than a cheap cash only buy, headache. Mortgages are not bad if the buyer lives within a well planned budget.
I live in Pennsylvania. Our area is currently getting an influx of people I recognize as refugees from urban areas of the East Coast which shall be nameless. Nevertheless it’s still over 95% what it was: people of white European ancestry, middle class, and most of them descended from immigrants who worked in coal mines and silk mills and such places.
There are no uptowns and downtowns here, no better and worse areas that I could label, certainly no “distressed” areas. There are row houses and multi-family houses that used to be single-family. There are plenty of single-family dwellings, plenty more than there are row houses. The houses I referred to ($15k and $25k) are single-family detached with good-sized yards. I know it’s incredible. The only people inclined to believe it these days are people in the cities, desperate to get out of there, nothing to lose.
As for sheriff’s sales, I’ve been to so many. You do your homework and you’re fine. Searching title isn’t difficult. And if you get title insurance, you don’t have to pay the back taxes. Also, if you have a little sitdown with the tax bureau you are likely to come away with tax forgiveness no matter what. They don’t want these properties on the books. Same thing with the mortgage. You don’t have to pay anyone’s mortgage debt at a tax sale, not one I’ve ever been to.
I don’t care to identify the area specifically and you can find it or similar just by researching a little at realtor.com or the mls.
It’s understandable that people who’ve lived a long time in one area, don’t readily believe that homes are a tenth of the accustomed price, in some other area.
The two places I mentioned would be easily over $100k in Doylestown or Wilkes-Barre or Stroudsburg. In the NY-NJ metropolitan region they’d be over $200k and come with crime stats in the stratosphere, and you wouldn’t be allowed to own guns either.
Trouble is, people seldom look beyond the immediate and familiar.
You say, “Mortgages are not bad if the buyer lives within a well planned budget.” I say they are immense debt and ponderous anchors that fix people in places they’re not happy or even safe.
Normal for most of human history.
We live in a consumerist society that atomizes groups and families into individuals in order to extract money from them. In a “service economy extracting monies for “homes for the elderly” is one way of moving monies from private hands to the healthcare-industrial complex. Beware and shield your assets.
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