Millions of millennials still live at home, analysis shows
Barron's Senior Editor Jack Hough on parents giving financial support to their millennial children who are facing mounting college debt.
A recent analysis found that 14 million adults between the ages of 23 to 37 are living with their parents, a sign that some millennials may have financial burdens.
The analysis by Zillow determined that 21.9 percent of millennials lived with their parents, up from 12.7 percent in 2000. More millennials chose to stay with their parents in areas where the rents were high. The study surveyed data from the U.S. Census Bureau and the American Community Survey.
The cities where most millennials lived with their parents due to affordability and other factors were Riverside, Calif., Miami, Fla., Los Angeles, Calif., New York, N.Y. and San Antonio, Texas. The analysis stated the median rent in those cities "would have devoured upwards of 35 percent of the income earned by the typical household."
More than 20 percent of millenials in San Francisco and the San Jose metropolitan regions are still residing at home, the Marin Independent Journal reported last week.
Despite a robust economy, the “face of rising housing costs and deteriorating affordability” may have some adults staying home. The survey also noted that some chose to stay with their parents for child care purposes since day care costs were high. The analysis stated the unemployment rate for those living at home in 2017 was 10.3 percent, down from 19.5 percent in 2010.
Despite the stagnation in their living situation, a recent survey showed that many don't think living with their parents is embarrassing until they hit age 28.
Meanwhile, wealthy millennials, or those with a gross annual income of $100,000 or more, are ditching some states, especially New York, according to a study by SmartAsset.
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Amid rising housing costs, millennials are also plagued with high student loan debt. Outstanding student loan debt hit $1.46 trillion at the end of last year, according to data from the Federal Reserve Bank of New York, second only to mortgage debt as a share of Americans’ total debt burdens. Data from Deutsche Bank Research found most people have student debt balances between $10,000 and $25,000. However, in some areas of the country, the amounts are higher, including in the states of New Hampshire, Minnesota, Pennsylvania and Rhode Island.
Fox Business' Brittany De Lea and Matt Richardson contributed to this report.