Share of young-adults living with parents is highest since 1940

Share of young-adults living with parents is highest since 1940

Share of young-adults living with parents is highest since 1940
It seems like a repeat of the trend that occurred a decade ago when Millennials, facing a shrinking workforce during the Great Recession resorted to returning home to live with their parents. Now, it’s happening again but rather than an economic collapse being the reason, it is a global pandemic.

According to the Pew Research Center, the share of 18- to 29-year-olds living with their parents is at its highest level since 1940. Data from the U.S. Census Bureau shows that in July 2020 there were 26.6 million Gen Z young-adults residing with one or both of their parents, up from 24 million in February.

The study found that approximately one-in-ten young adults have moved back home with their parents due to the coronavirus outbreak with 23 percent of that group saying it was because their college campus has closed. Younger Americans were also most likely to be impacted by the shuttering of non-essential businesses due to COVID-19, often working in restaurants, hair salons and gyms.

Today, conforming no-point 30-year fixed mortgage rates are averaging 2.875 percent and 15-year rates are near 2.5 percent.

Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.