- REUTERS/Mark Makela
More millennials can’t afford to move out of home than at any other time in the past decade.
A Zillow analysis published Thursday showed that the share of people ages 24 to 34 living with their parents had risen every year since 2005, from 13% then to 21.4% in 2014.
Zillow’s data is based on the latest available Census Bureau numbers and its own estimates of the median rent in major cities.
A crisis of housing affordability is being worsened by tight inventories and strong demand.
Rents, Zillow noted, have risen by nearly 3% over the past decade, while incomes have grown by only 2%. And Zillow forecasts that rents will continue to climb.
The report acknowledged that, for some people, the decision to live at home is not just economic. But expensive housing is usually the reason.
“Living with their parents may allow young people to continue to do things like continue their education, save enough money for first and last month’s rent, or save for a down payment,” said Svenja Gudell, Zillow’s chief economist.
El Paso, Texas, had the highest share of millennials still living at home in 2014, at 34%. In the super-hot San Francisco housing market the share was 21%, and it was 30% in New York – up from 21% in 2005.