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Living With Your Parents

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Tags Global Economy

12/21/2016

There is nothing wrong with living with your parents as a young adult. After graduating from college you can save money to pay off your college loans or to save up for a down payment on your own house. You can also contribute to your parents living standard by paying some rent, paying some utilities, or doing your old chores around the house. I've know plenty of young adults and even older adults who have moved back home to everyone's mutual benefit. I kinda wish I had been able to live with my parents for a while and got to know them as an adult.

However, the trends of young adults moving back home is a sign of troubling economic times. MSM Money reports:

More young people are returning to their childhood bedrooms than in decades. An analysis from real estate company Trulia found that nearly 40% of young people were moving in with their parents, siblings or other relatives in 2015, the Wall Street Journal reported. That’s the largest share of young people living at home since 1940.

In other words the more than decade-long increasing trend and the breaking of a 75 year standing record is clearly the result of weaknesses in the economy. Of the many factors are a lack of good paying full time jobs, rising rents for apartments, increased difficulties for qualifying for mortgages, and the burden of paying off college loans. Similarly, there has been a drop in household formation and the birth rate, although the latter trend has long been in place. The increase in young adults living with their parents has also taken place in many European countries.

Mark Thornton is a Senior Fellow at the Mises Institute and the book review editor of the Quarterly Journal of Austrian Economics. He has authored seven books and is a frequent guest on national radio shows.

Note: The views expressed on Mises.org are not necessarily those of the Mises Institute.
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