According to the Urban Institute (a nonprofit research organization in Washington DC), the percentage of young adults between 24 and 34 who are living with their parents has risen more than 10% between 2000 and 2017.
While student loan debt and restrictive mortgage credit guidelines are contributing factors toward this trend, high housing costs in metropolitan areas – where young adults tend to gravitate – are also a notable factor.
This trend does not bode well for the future of young millennial adults as homebuyers. The Urban Institute study found that millennials in this group who lived with their parents were less likely to form independent households and were more likely to lag in homeownership by 10 years compared to their peers who left their parents’ home earlier. Nor did living with parents help these millennials to be in a better position as homeowners, the research said, as young adults who stayed with their parents longer did not buy more expensive homes or have lower mortgage debts compared with young adults who moved out earlier.
The research also gave an impetus to young adults to move out of their parents’ home earlier. It said that those who bought homes between the ages of 25 and 34 had the greatest housing wealth at the age of 60 and those who bought before the age of 25 received the biggest housing investment return.
So there you have it! If you are a young adult who is tired of living at home – or perhaps you’re a parent of a young adult and you’re looking forward to an empty nest – contact Mortgage Wealth Advisors! We have many First-Time Buyer Programs and we’ve helped countless first-time buyers become homeowners.
Call us now for a No-Cost, No-Obligation Consultation.
Warren Goldberg is President of Mortgage Wealth Advisors, a Certified Mortgage Planning Specialist®, and a published author. His interviews include Blog-Talk Radio, Newsday, The Daily News, Anton Press, and the Long Island Herald. Since 1992, he’s been sharing his financial knowledge and wealth-building strategies, including how to properly use your mortgage as a financial tool. His clients regularly express their trust and appreciation by recommending friends and family call when in need of mortgage, real estate, and financial guidance.