Guest Post by Dr. Housing Bubble
A record 34.5 percent of Millennials live at home with their parents in California. This rate is higher than the national rate of 30.3 percent which is already incredibly high. There is ample evidence suggesting that Millennials simply do not want the same things as their Taco Tuesday baby boomer parents. And many simply don’t want the McMansion aspiration since many are going to have small families. This is an interesting shift. Boomers are trying to off load larger crap shacks to an audience that is more interested in smaller more centrally accessible properties. In California, those young adults that aren’t living at home are likely living in a rental and paying close to half their income on housing. Good luck saving that 20 percent down payment on a $700,000 crap shack (or $1 million crap shack in the Bay Area). So why do so many young adults live at home if the recession ended in 2009, more than half-a-decade ago?
Young adults living at home
It should come as no surprise that there are a record number of young adults living at home. A Fed study found that one major reason stems from younger Americans having massive debt, largely in the form of student debt. The latest figures show student debt outstanding at $1.3 trillion. This is an increase of $1 trillion in the last decade or so. So many young adults are starting life with a mini mortgage already.
Let us look at the changing trends here:
Source: Census
