1 in 4 young adults live with a parent or other elderly family member, study finds

1 in 4 young adults live with a parent or other elderly family member, study finds

According to a new Pew Research Center report, one in four young adults will live with their parents or another elderly family member in 2021, the largest share in more than 50 years.

The trend is even higher among people ages 25 to 34 without a college degree, where nearly 1 in 3 lived in a multigenerational household last year, the study found.

Such families, which usually involve a young adult living with parents, grandparents or other elderly relatives, have increased in recent decades, from 1 in 10 young people in 1971. Student loans and high housing costs, as well as economic pressures are contributing to the trend, as reduced earnings for young people without a college degree, Pew senior researcher Richard Fry told CBS MoneyWatch.

“Multigenerational living is, in a way, a safety valve. It’s a calm from the financial storm,” Fry said. “If they weren’t in a multigenerational household, their poverty rate would be much higher — economically they would be significantly worse off.”

The findings are having an impact on the economy, since these young adults aren’t starting their own families at the age when people in the past went out on their own to buy homes, get married or rent their own apartments. At the same time, Rising housing costs During the pandemic, as well Highest inflation in 40 yearsMaking it harder for young adults to move out.

“The real estate community has a real huge interest in this,” Fry noted. The trend is reducing demand “for housing, apartments” and for furniture and other purchases that go with setting up a household, he noted.

Most Likely to Live at Home: Young

Fry said the only time that probably exceeded the current share of multigenerational households was the Great Depression in the 1930s, when the economic downturn pushed young adults back into their parents’ homes. However, the lack of data collection on such topics at the time made it difficult to pin down statistics, Fry noted.

“It’s the highest level since the 1970s, and it’s probably the highest level since the 1940s,” he said.

Interestingly, 59% of young adults currently living with their parents or grandparents are male, Fry said.

“What do we know about the labor market outcomes of less-educated men over the last 50 years? This is a group that, when we adjust for inflation and look at the general earnings of young people without a bachelor’s degree, their earnings have been declining over the last 50 years,” Frye said. Those people “probably There is real difficulty in being able to live independently.”

“This is not true for young people with bachelor’s degrees,” he added.

Younger women are less likely to stay home in part because their earnings have been rising over the past five decades, regardless of whether they have a college degree or not, Fry noted.

There’s another reason for the rise of multigenerational families, adds Fry. This is a growing share of Hispanic and Asian households within the United States, where it is a cultural norm for young adults to continue living with their parents or older family members.

The epidemic has also pushed some young adults home, although the study underscores that the overall trend has been increasing for at least 50 years, Fry noted.

“Multigenerational living is particularly prevalent among what I would call disadvantaged young adults, or less educated young adults,” she said. “If they’re not with their parents or grandparents, they’re going to be in a much more dire economic straight.”

Leave a Reply

Your email address will not be published.