The economy still feels like it is in a deep recession for millions of Millennials.
The Great Recession officially ended in the summer of 2009. That was a long time ago. Yet somehow along the windy road, Millennials are not feeling the love from this so-called economic recovery. Millennials continue to graduate with mountains of student loan debt coming out with an average of $30,000 per graduate. Millennials are struggling to find good paying jobs in a sea of low wage employment that in many cases is a mismatch for their degrees. You also have a large number of Millennials living at home with their parents unable to move out into a rental or to purchase a new home. Part of this stems from lower incomes but also the inflated cost of housing brought on by an artificially low rate environment and big investors crowding out regular first time buyers. In many ways, the recession is still very much here for Millennials and this is the next big cohort to move through the economic system.
Living at home with parents
The number of Millennials in the United States is large, only second to the baby boomer cohort. This cohort is already a few years into the prime home buying years but many are unable to launch into the marketplace.
The ability to move out into an apartment and then purchase a home is a big deal. This usually spurs on construction and home buying but that simply hasn’t materialized. First, a look at cohorts in the United States:
“(Kansas City) Nearly half of all millennials still live at home with their parents. But Norris and her teacher husband, Bryan, own their home north of the river.”
It is stunning to think that half of Millennials are living at home. But even if we look at the 25 to 34 age range we find that a large number of young Americans are living at home:
What is going on? First of all, incomes are simply not keeping up and many are saddled with large levels of debt:
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