The Kids (and Homes) Are All Right
A report soon to be released by Goldman Sachs Group (NYSE: GS) shows that the percentage of adults living with their parents may have peaked. The Financial Times published a chart from the report as well as an excerpt of the note, and the publication reports that a slowly improving labor market and marriage rates were the key drivers behind young adults finally striking out on their own again. Goldman Sachs’s research focuses on 18- to 34-year-olds, otherwise known as Millennials, or the “boomerang generation.”
In separate study, Pew Research found that a record number – 36 percent — of Millennials lived with their parents in 2012. Pew’s definition covered 18- to 31-year-olds, a slightly different demographic than what Goldman Sachs used. However, the record number for 2012 corresponds with a spike on the Goldman Sachs graph.
Pew’s researchers found similar reasons why Millennials returned home as those at Goldman Sachs did. In addition to choosing to marry at a later stage in life and a weak labor market, Pew cited increased college enrollment as a reason for the increase of adults living at home during the recession. This particularly applied to Millennials between the ages of 18 and 24, because they might be living at home while attending college or categorized as living at home even when residing on campus.