GOLDMAN: America's 18- To 34-Year-Olds Are Finally Moving Out Of Their Parents' Basements
This trend has been one of the forces holding back the US housing market.
But in the past few months, it that trend has been reversing and America's young people are finally moving out!
According to data from Goldman Sachs, the percentage of 18-34-year-olds living with parents is now at the lowest level since 2011.
"The improvement in the labor market is likely to push up the headship rates of younger people," writes Goldman Sachs' Jan Hatzius. "Econometrically, we have found some evidence that headship rates respond to labor market changes in the under-35 population.
The "headship rates" is the ratio of one household to number of people living in that house. So if you have 5 roommates, that's a low headship rate (1/6). And if you have 1 roommate, that's a high headship rate (1/2).
Over the last few years, millennials saw higher rates of unemployment than their older counterparts, had less spending power, and saw soaring student debt.
As a result, many younger Americans simply couldn't afford to own - or even rent - their own homes. They had no choice but to live at home with their parents.
From 2008 to 2013, the percentage of 18-35 year olds that were living at home with their parents kept rising - from nearly 26% up to nearly 32%, according to data from Goldman Sachs.
Ultimately, all that Goldman Sachs is saying is this: as the labor market improves, there are less millennials living under one roof (aka they're moving!)
So since the labor market is continuing to improve, it looks like millennials (and parents) can finally breathe a sigh of relief.