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Economic Woes Cited By Parents of Home Bound Millennials

Experts have surveyed the young generation again and again as to why they are staying with their parents, but now Fannie Mae has completed a survey of the parents they live with. As it turns out, more than half of them don't mind their children living at home.

The National Housing Survey Topic Analysis segmented the millennial demographic into two ranges: the "younger" millennials aged 18 to 22, and the "older" crop aged 23 to 34. The results collected showed slight differences between the groups, but when asked if they would rather their children stay or move out, 68 percent of parents overall said "I prefer that they continue to live in my home."

When asked why their children are staying home, the most common answer among parents of the younger crowd was that their children were saving money while still in school, representing 40 percent of responses.

The primary reason cited by 24 percent of parents for older millennials was "they do not have enough income to live in their own home," a nod to the problems that this new group of adults face in relation to employment and low pay.

Other answers included the fact that the children were "not yet married," which was chosen by 16 percent of older-group parents compared to 6 percent of younger-group parents; "we prefer to share the same house" (9 percent of parents among both groups); "they are saving money for the future" (more often selected by older-group parents at 11 percent); and "they are helping you to pay for the household expenses" (7 percent of older millennials compared to only 2 percent of the younger ones).

Among those millennials who stay with their parents because they are ill, the percentages were 2 percent for the younger segment and 3 percent for the older.

There were significant differences between the groups over how long parents expected their children to stay in their homes. Fifty-two percent of older-group parents believed their children would move out within two years compared to 38 percent of younger-group parents, while younger-crowd parents were almost equally likely to think their children are moving out within 2 to 5 years at 34 percent.

Almost a fifth of all parents for each age group thought their children would stay at home for five years or more.

Among those parents who responded that their children would be staying fewer than five years, 54 percent overall believed their children would rent their next residence compared to 28 percent who said their children would buy a home. About 5 percent believed their children would move out to live with someone else, but not pay for their housing in any way.

The conclusions drawn in the report state that parental preferences over living arrangements encourage millennials to stay at home and that the age of children has some effect on how willing parents are to keep them around. But given that financial reasons topped the lists in both age categories, it is likely that financial inability is keeping the newest generation of would-be homebuyers out of homes. The analysis concludes: Millennials "will start to form their own households once they feel confident about their financial situation and future prospects."

About Author: Cody Galuardi


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