Adults living with parents affecting the housing market
Posted on Tuesday, August 13, 2013 at 11:25:38 AM
A recent survey of more than 2,000 Americans has come to an interesting conclusion - few people agree about the proper length of time adults should live with their parents after graduating from college.
These so-called "boomerang kids" may be affecting the housing market, since the 18 to 34-year-old demographic typically fuel housing sales. Residential financing is an ideal way to buy, but some young adults are looking to avoid real estate altogether, at least for the time being.
The study, conducted by Coldwell Banker Real Estate and psychotherapist Dr. Robi Ludwig, reported that Americans over 55 years old believe adults should only stay with their parents for three years, while people 18 to 34 years old feel that five years is acceptable.
How long is too long? That generation should be buying homes and helping the recovering market. A lack of employment and low wages might be a deterrent, even with affordable residential financing.
In addition, missing households represent the number of homes that should have been created during normal household formation, according to Trulia. In 2013, that number hit 2.4 million, down from peaks reached in 2010 and 2011, but still on the higher end.
Ideally, more young adults will move out of their parent's homes and into their own, contributing to the surging housing market.