Millennials are finally leaving their parent’s homes

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Millennials are finally leaving their parent’s homes | Downers Grove Realtor

downers grove real estate agent beata kolpekThe pace of young adults leaving their parents’ homes is accelerating significantly, Fannie Mae’s Economic and Strategic Research Group notes in a new analysis.

Young people that are in their mid to late twenties or early thirties that still live with their parents dropped between 2013 and 2015.  This period was also a time of economic recovery.  This drop was significantly greater than between 2010 and 2012 when the economy and the housing market were in the process of recovering from the Great Recession.

Millennials that are aged 24-25 in 2013 and 26-27 in 2015 still living with their parents fell by 7.6%.  Those that were in the same age ranges in 2010-2012 only declined 5.4%.

“Stronger income growth and an accelerated rate of marriage are likely two primary reasons why millennials are starting to leave their parents’ homes at a faster pace,” researchers note.

Young adults in their twenties or early thirties saw their income, adjusted for inflation, grow by about 23% between 2013 and 2015 when compared to 2010 and 2012.  In addition to this, their incomes have increased 81% than compared to 2008-2010.

Between 2013-2015, this same demographic was getting married at a significantly faster rate than their predecessors did in the same demographic during the Great Recession and during it’s recovery, Fannie Mae’s report notes.

“Millennials’ accelerated rate of departure from their parents’ homes bodes well for housing demand,” Fannie Mae’s Economic and Strategic Research Group notes in the report. “Cohort analysis shows that the increased pace of leaving home has been accompanied by accelerated young-adult household formation.”

Source: “Starting to Launch: Millennials Are Leaving Mom and Dad’s Basement,” Fannie Mae’s Housing Insights (2017)

Whether you’re buying or selling a home, you’ll want a qualified Realtor by your side.  Beata Kolpek is Downers Grove’s premier real estate agent with Platinum Partners Realtors in Downers Grove.  Contact Downers Grove real estate agent Beata today!

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