Analysis of U.S. Census Bureau data reveals that 34.1% of millennials are still living with their parents, with more of them doing so than participating in any other living situation category, according to apartment-search company Abodo.
The list of metro areas with the highest concentrations of millennials living at home doesn’t just comprise the priciest or most populous cities. High percentages can be seen in metros as varied as New York (43.8%), Cleveland (36.4%) and Houston (35.0%). Miami has the largest share, at 44.8%.
Male millennials make up a slightly higher proportion of those living at home, at 54%. A breakdown by age shows that the highest concentrations are in the youngest age category, with 41% of 18- to 21-year-olds still living at home.
Reasons for such high numbers coincide with what many analysts have been reporting: tight job markets and high median rents, among other factors. Despite the housing market’s slow-but-steady recovery, millennials still face tremendous barriers to homeownership, from depressed incomes and rising mortgage rates to student loan debt and elevated rents
Also to blame is the dearth of affordable housing options suitable for first-time buyers. Even with the continued market recovery, for-sale housing inventory remains tight, particularly for first-timers. As Trulia reported in December, starter-home availability fell 12.1% year-over-year, the biggest drop in three years. Starter homes make up just one-quarter of available inventory, Trulia reported, with premium homes capturing a 50% share.
Many builders recognize both the need for and the potential benefits of catering to millennials, currently the largest generation in the U.S. and poised to make up 33% of buyers this year compared to a 30% share for baby boomers.
Toll Brothers, for example, announced a line of homes in December aimed at millennials that mirror the company’s typical offerings but with fewer upgrades and options to manage costs and shorten delivery times.
In October, Meritage Homes introduced LiVE.NOW., a line of homes targeting first-time buyers. The houses are priced from the low $200,000s but still include energy-efficient details and sought-after features such as kitchen islands and granite countertops.
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