Dive Brief:
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Millennials are more likely to live with their parents for an extended period of time than were previous generations, according to a new report from the Pew Research Center. In 2016, 15% of people ages 25 to 35 lived in their parents' home — 5 percentage points higher than the share of Generation Xers (10%) and almost double that of the Silent Generation (8%) when they were the same age.
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Unemployment is not likely a driver of the trend, as just 5.1% of 25- to 35-year-olds were unemployed when surveyed. Millennials with a bachelor’s degree or higher were less likely to live at home than were those with just a high school diploma.
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Millennials are also moving much less often than previous generations, regardless of whether they're residing with their parents. Of millennials aged 25 to 35 who lived with their parents in 2016, 91% said they had lived there the year before, too.
Dive Insight:
Part of the reason millennials are relocating less often than generations before them has to do with the age group postponing traditional mobility catalysts, including marriage, purchasing a home and having children. Student debt, challenges around saving up for a down payment and a tight lending climate have made it hard for millennials to transition into those life events.
Along with financial barriers, a lack of for-sale housing inventory and skyrocketing home prices are pushing back some millennials' timelines for buying a home. The supply of starter homes fell 8.7% in Q1 2017 while the median starter home list price rose 8.3% year-over-year, according to Trulia. High rents could encourage millennials who can afford it to look to purchase a home sooner rather than later.
New technology could also encourage the generation into homeownership by simplifying the buying process. Zillow's launch of RealEstate.com in early May targets millennials and first-time buyers and lets them browse listings by their desired down payment and monthly mortgage amounts. Zillow is not alone. A host of mobile and web applications integrate social media and email and chat functionality to help users scout, compare, share and, ultimately, purchase homes.
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