Rent is soaring, first-time homeownership is plunging, and that leaves some people wondering where all the millennials are living. The answer is, according to a report from Pew, “kids are living at home these days in numbers not seen since World War II.” A third of young women, and more than 40 percent of young men, are now living with relatives that are not a spouse. Research also shows though, that empty nests are overrated for both parties.
There are a few reasons why the chicks are not flying the nest these days. Pew argues that while the Great Recession is an important factor, the trend of kids staying at home longer actually began in 2000. Despite the fact that peak unemployment numbers are behind us, the kids at home trend has continued to rise. The biggest factors are that, “more people go to college (often living at home while they do so), and fewer people get married at a young age. The traditional milestones that begin financial independence are coming later, and so, therefore, is the independence.”
While many may joke about adult children staying at home and the desire for empty nests, the potential costs are arguably well balanced by benefits. For starters, multiple generations living together as adults is the norm in European countries. Having those family members around means that there are more people to help and take care of things around the house or family members if something goes wrong. It also means more financial stability. Adult children can use the money they save on rent and filling a home with appliances and furniture for important expenses like an education.
Stories of kids staying home longer— a lá the “Failure to Launch” movie may have had many parents and teenagers worried, but rediscovering the benefits of a nuclear family living together for an extended period has actually helped many families throughout the country. The rising cost of important milestones—an education, moving out, weddings, new homes—make it important for young adults to have strong financials before flying the coop. Additionally, the relationship many young adults establish with their parents is significantly different (and better) than the relationship between parents and angst-filled teenagers.
The dynamic of living at home is different for every family—for some it is an enjoyable experience and for others it’s a ticking time bomb of frustrations. Whether you are looking to move out soon, or are looking at your long-term plan, strong financials are crucial to success down the road—and reaching all those big milestones. An expert at Apex Financial Advisors can help you develop a short-and/or long-term plan for your future success. Call us today to start discussing your future and reaching your big milestones.