NEW YORK (CNNMoney) — With job openings scarce, getting adult children to leave the nest is becoming a lot more
The number of adult children who live with their parents, especially young males, has soared since the economy started
heading south. Among males age 25 to 34, 19% live with their parents today, a 5 percentage point increase from 2005,
according to Census data released Thursday. Meanwhile, 10% of women in that age group live at home, up from 8% six
Among the college-aged set, the 18- to 24-year-olds, 59% of males and 50% of females lived with their parents, up from
53% and 46%, respectively.
The fact that so many young people are unable or unwilling to flee the nest “cuts into the formation of new households
quite a lot,” said Mark Zandi, chief economist for Moody’s Analytics.
Zandi calculated that there are about 150,000 fewer households being formed per year than the 1.2 million that would be
in a normal, well-functioning economy.
A decline in household formation means depressed demand for homes and as a result, lower home prices, explained Lawrence Yun, chief economist for the National Association of Realtors.
But even if all of those young adults rented it still would have an impact on home sales.
Read : “Living with the folks” an article by CNNMoney