According to the Calculated Risk Blog, there is a strong inverse relationship between the percentage of 24-34 year olds living at home vs. the under 35 homeownership rate. Economist Tom Lawler says this steep growth in grown-ups living with their parents suggests a pent up demand for housing units when the the employment picture improves. Some of that demand, of course, will be for rentals. Let’s hope that is the reason and solution and staying at home with the parents until middle age won’t become a lasting trend.
Since the 24-34 age group makes up a significant portion of my real estate buyer business (and since my family is directly impacted by this statistic), I hope that, as the economy improves and jobs become more stable and abundant, more and more of that demographic will be willing to leave the nest.
Here is Tom Lawler’s Graph: