When Millennials Move Back Home

The Wall Street Journal:

More millennials are spending early adulthood in the same place where they spent their formative years: in their parents’ homes.

It’s crucial that both parties understand the financial implications of this homecoming. For parents, a child’s return often means a greater financial burden, just as the parents may be struggling to meet their own savings and retirement goals. It also can make it more difficult for the millennials to acquire the financial skills they’ll need later in life.

According to a recent study by PEW Research Center, the percentage of 18- to 34-year-olds living with their parents is higher today than it has been in decades. Currently, 26% are back in the nest, up from 22% in 2007. The rise has occurred among both high-school and college graduates, and has continued since the recession’s end, despite the fact that millennials are earning more and have a lower unemployment rate than they did a few years ago.

…

“People used to make jokes about moving back in with mom and dad, but we have come to recognize that it takes longer to attain full adulthood than it used to,” says Jeffrey Arnett, a psychology professor at Clark. Prof. Arnett attributes this change to rising levels of education and student debt.

Read the whole story: The Wall Street Journal