Yes, Millennials are still living with their parents.
News flash…other Millennials have moved out, but are still living off their parents.
Here’s what you need to know and how to become more financially independent.
The Issue: Financial Dependence
While the economy is strong, some Millennials are either still living at home, or they are moving out and remaining financially dependent on their parents.
According to a Pew Research Center report, Millennials live with their parents longer than both Baby Boomers and Generation X did.
For example, as of 2016, 15% of 25- to 35-year-old Millennials were living in their parents’ home. This is 5 percentage points higher than the number of Gen Xers who lived in their parents’ home in 2000 when they were the same age.
Welcome to the boomerang effect – it’s when Millennials spread their wings to become independent during college years, and then move back after college.
1 in 4 Living At Home
According to Zillow, nearly one in four Millennials still live with their mother.
In analyzing U.S. Census data from 2005 to 2016, the real estate company analyzed families that include a mother and a younger resident between ages 24 and 36 who live in the country’s 50 largest metros.
The study found that, on average, 23% of Millennials live at home.
So, what’s driving this financial dependency?
Root Causes: Millennials Living At Home
Multiple factors may influence Millennials’ decisions to live at home, which may include the cost of housing, debt obligations and their ability to find a job, among others.
Two factors, in particular, may be a driving force:
1. Student Loan Debt
With over 44 million Americans collectively strapped with $1.5 trillion of student loan debt, many Millennials struggle to afford their student loan payments.
2. Housing Costs
In New York City, the average cost of a one-bedroom apartment…