Millennials Slow to Form Households
May 9, 2012
Millennials have always been slow to reach the milestones of adulthood. As more of them become adults, the age of first marriage and the age of first-time home buying has steadily crept up. Now, the recession has slowed them down even more as they struggle to find jobs and become financially independent. And that is hampering the housing recovery, according to an analysis by the Washington Post.
Census data shows that the recession has slowed the rate of formation of new households by 50%, leaving at least 2 million homes unoccupied that might have normally been inhabited (about two thirds of the nation’s excess vacant housing). Instead of setting up house on their own, Millennials are opting to stay with family or roommates. More than 20% of adult (25-34) Millennials are now living in multi-generational households. 29% of parents with adult children report that one has moved back in recently.
While Millennials’ reluctance to move out may be a drag on the housing economy, many will be unable to strike out on their own until the overall economy improves. They have the highest unemployment rate of any generation and make up the largest segment of those who have dropped out of the labor market entirely.