Nearly 23% of millennials aged from 24-36 years old are commonly being see living at home with their parents. While older generations might equate this behaviour to laziness or lack of motivation – there are some reasons why this phenomenon is happening at the rate it is. Though, it wasn’t always like this. Just back in 2005, that number was only 14 percent.
Unlike historical normalises, more and more younger people are living at home after they either finish school or are having a hard time starting a life of their own. This is mainly due to the current housing market constantly outpacing the wages that these millennials are earning. No matter if the millennial in question has a college degree or not – many jobs are only paying minimum wage, and the costs to either buy a home or rent a home are increasing double what millennials are even making a month.
Proof in the Census
Census has shown that this year – homeownership numbers for people aged under 35 has hit the lowest its been in twenty years. Even if millennials decide that they would want to rent a home or an apartment, the costs for rent have been increasing by hundred almost every month. However, this factor does depend on the living area of the millennial. In urbaner metropolitan areas – the rent does tend to be higher than in suburban area. Though with the rising costs of the housing market, many jobs and governments are refusing to raise the minimum wage limit to something that will be livable for a millennial with or without a college education.
However, despite the increase of millennials at home, people in this age group do hold the power of shaking up the housing market in their favour. While they can save money living at their parents’ home and actively avoid buying or renting a home, companies are eventually going to be forced to lower the rent prices of and even possibly their homes. This is imperative if millennials are to be inclined and comfortable to take the plunge of moving out from their parents’ home into one of their own. Another solution to this problem is having governments raise the current minimum wage to something that is livable. Seeing how prices are always going to rise and falter in todays economy.
Millennials Struggling with Home Ownership
Moreover, many of the millennials who are current homeowners or renters – live in the suburbs where they were able to find a home without paying a lump sum of money. This is due to the fact that many homes in the suburbs lack what homes in metropolitan areas do: community gym and swimming pools, restaurants within a few minute walk, and a area with events that are always going on. If more millennials are looking for a way to move out of home and become truly independent, then they should consider looking at homes in more suburban areas. Usually, they will be able to find a good starter home that doesn’t require any renovations – though millennials are going to have to give up being close to the city if they want to make this change.