The argument over which generation has gotten hit harder with the recession, Generation X or Generation Y, is still a topic of interest until this day. The backlash of the event has hit many of the baby boomers in recent years but how will it affect the future of their kids? For the past four years, young adults have been highly impacted by the tragic economic event, which left many unemployed and also led to a large downturn for the real estate market.
With many pinching pennies, the 20 to 35 year-old demographic have arguably been hit the hardest. Several recent graduates found themselves had to move back in with their families while others moved in with friends to split rent expenses. But there is some light at the end of this real estate tunnel!
Recently, many young adults recovered from the recession and started to move out from their family and friends’ homes. This move resulted in a large amount of young adults s to move out and able to establish their own living arrangements. But with higher buying costs, grads had to rent apartments and condominiums instead of purchasing homes. Still better than living with the rents right?
With more higher education opportunities, graduates were able to find a large amount of entry-level positions available to them. A Harvard study showed that only about 30% of individuals in that age demographic live with their parents, which would most likely be the ones still in college or just graduated.
Out of those 30%, about 78% are satisfied with their living conditions at home with parents. But that means that almost 3 million young adults who live at home would still want to “leave the nest”. High-priced rent apartments seem like they will be an ongoing trend if young adults still want to move out of their parents’ homes and the economy gets better.