David Dulberg
August 2018

Are You a Millennial Living With Your Parents? You Are Not Alone

So, you are 25-35 years old and you live ad hoc, meaning you are not renting or buying. You are living with your parents, friends, or relatives. You’re not homeless, but you’re not living in a place you consider your home either. Maybe you feel discouraged, isolated, and alone.

You shouldn’t!

According to a new PEW Research project, there are lots of people in your exact situation. In fact, there are millions. In 2017, nearly one in four 25-35 year olds lived ad hoc.

To get some perspective, in 1993, 12 percent of people in the study were neither renting or buying. In 2005, those living ad hoc had risen to 18 percent and has been climbing steadily ever since.

Double Whammy

Of course, you already know that you have been hammered by the double whammy of out-of-control increases in student loan debt and housing costs–neither of which have been offset by slow-roll increases in income. According to the National Association of Realtors statistics, between 2011 and 2017, home prices grew 48 percent while income for all age groups rose only 15 percent.

If you are young, and you have college debt, you typically spend close to half of your income on loan payments, according to a 2017 study in The Journal of Consumer Affairs. The median student loan debt for millennials is $41,000, which is a primary reason millennials delay buying their first home for at least seven years.

It is also the reason why you may put off moving beyond ad hoc living for what seems like forever.

The main takeaways is this: Millions of Americans just like you have  put off moving out of their parent’s, friend’s  or relative’s house, put off having a serious relationship, and put off having children as they try to build careers delayed even further by the ripples from the Great Recession.

So now you want some good news, right?

There were slightly more millennials buying homes last year. Just slightly more. One tenth of one percent more millennials became homebuyers in 2017 compared to 2016.

Okay, not great news maybe, but not bad news either, right?

Perhaps this means a change is on the horizon, somewhere out there in the distance.

Reading Tea Leaves

Though there has been a tremendous amount of pressure to lower the cost of college tuition, address both soaring housing prices and slow increases in income, there is nothing in the tea leaves to suggest any of these will turn around quickly, if at all.

What can the tea leaves say for sure?

Live with your parents if you need to, as long as they’re okay with it. Keep paying off your loans. And, most of all, remember this:

You are not alone.

Options are available to help

Most people do not realize that there are programs designed to help those who may be struggling with their student loan payments. Thousands of borrowers have trusted Ameritech Financial to be their advocate. Click here to find out what options are available. Our services could help you get back on track.

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David Dulberg

David Dulberg lives with his wife in the coastal hills above a narrow creek, mid-canopy in a redwood forest. He has been writing for non-profits for many years, and volunteers as a pilot on the Baum Squad, a tandem bike riding program for the Earle Baum Center for the Blind. He does not have a pet. This does not make him a bad person.

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