Starting to Launch: Millennials Are Leaving Mom and Dad's Basement
Given the size of the Millennial generation and its impact on housing, young-adults’ current living arrangements are often analyzed. Many analyses use a traditional approach that compares the same age group containing different people at different points in time. The results have shown the seeming inability of Millennials to leave their parents’ homes and establish their own households.
However, in this edition of Housing Insights, Fannie Mae's Economic & Strategic Research Group presents an alternative perspective using “cohort analysis.” Here, ESR monitors the change in the proportion of young adults residing with parents for the same group of young people as they grow older and pass from one age group to the next.
This cohort analysis shows that the pace at which young adults are leaving Mom and Dad’s house has actually accelerated substantially – which bodes well for housing demand and is likely to affect several segments of the housing market.
Read our latest edition of Housing Insights and hear from the author, Patrick Simmons, in his related Perspectives blog.