Majority of young adults (ages 18-29) now live with their parents.

[Gumby]

Interesting piece by Pew Research Center that suggests (to me, at least) that those contemplating early retirement should be considering that their children may very likely still be in their house when they are ready to retire. Analyzing the latest census data, they find that 52% of adults aged 18-29 now live with their parents, the most since the Great Depression.

https://www.pewresearch.org/fact-ta...or-the-first-time-since-the-great-depression/

Obviously, that is going to put a damper on retirement plans that contemplate a move.

 

[timo2]

Here is a different option: The house next to us is owned an older single mom that arrived in 2018 and appears to have basically purchased a house for the kids. It seems like more of a family hub home. At least one 20 something daughter and her grade school child and possibly a 30 something daughter and her middle school child. Plus another college age daughter that used to come and go with the semesters, but hasn't been around since COVID. Then there are the grandparents that come by and do yard maintenance and installed a concrete slab for a basketball hoop. We seen the owner-mom occasionally. They are all very nice people. But it appears they have purchased a large family home for people to come and go from as their lives require.

 

[RunningBum]

Interesting piece by Pew Research Center that suggests (to me, at least) that those contemplating early retirement should be considering that their children may very likely still be in their house when they are ready to retire. Analyzing the latest census data, they find that 52% of adults aged 18-29 now live with their parents, the most since the Great Depression.

https://www.pewresearch.org/fact-ta...or-the-first-time-since-the-great-depression/

Obviously, that is going to put a damper on retirement plans that contemplate a move.

I wonder how much of this is a trend, vs. a side effect of COVID and the high unemployment rate.

The share of 16- to 24-year-olds who are neither enrolled in school nor employed more than doubled from February (11%) to June (28%) due to the pandemic and consequent economic downturn.

What a terrible year for those graduating college or high school to enter the job market. It's hard to get your own place without a job.

 

[latexman]

Not surprising to me. We started late, had 1, and adopted 4 kids. The youngest is 21 next week and a Jr. in college. He and his 22 y.o. sister live at home now. Over the last few years, two others boomeranged back until they built up their kitty and re-launched. We are 63 and plan to retire at 65.

 

[WyomingLife]

Interesting piece by Pew Research Center that suggests (to me, at least) that those contemplating early retirement should be considering that their children may very likely still be in their house when they are ready to retire. Analyzing the latest census data, they find that 52% of adults aged 18-29 now live with their parents, the most since the Great Depression.

https://www.pewresearch.org/fact-ta...or-the-first-time-since-the-great-depression/

Obviously, that is going to put a damper on retirement plans that contemplate a move.

It might also suggest that those of us who have been fortunate to live our lives in generally favorable economic conditions (e.g., Baby Boomers like me) should think about helping our children and grandchildren instead of hyper-focusing on merely getting ourselves to the finish line.

Data and analyses suggest that a completely random variable — when one is born — has a fairly significant bearing on how one fairs in life at the finish line as measured by assets, net worth, home ownership, etc.

I have great empathy for those entering the workforce in 2008, or 2020. Many youth have now experienced those two major economic body blows as they sit in their early 30’s. I believe that one’s economic views are established early in life, at least in part. If I had graduated college in 2008 and was now facing the second economic calamity of my young career, I might be re-analyzing such fundamental issues as whether capitalism was helping me.

Anyway, this news makes me want to help the next generation instead of trying to ascertain when I can maximize my time on the golf course.

 

[rodi]

Hello Gumby- you talking about me?

Oh wait - I retired BEFORE they were young adults. Fortunately, my plans don't require downsizing or relocating. (Although my personal goals are to downsize once we launch the kids.)

I have a 17yo and 19yo... I suspect the 17yo will launch before the 19yo... just based on personality types.

My BIL has kids ranging from age 26 to 31... The 26 year old moved out last month. BIL is retiring next year and has warned the kids the house will be sold out from under them because they are moving to Florida. And no kids will be allowed to move in with them in FL... they can move down there- and rent an apartment.... but no more living with mom and dad. Middle child has almost enough for a deposit on a 2br condo... so she'll be fine. The oldest... well... it will be interesting.

 

[Bigdawg]

large gap between 18 and 29. Almost every 18 year old, that I am aware of, lives with their parents. Very few 29 yr olds, that I am aware of, live with their parents. I have only been in Southern MD for 11 years but am surprised at the lack of parental interest in launching the kids. Seems to me that 25 seems to be a tipping point. But boomerangs happen.

 

[travelover]

This would be a good reason to move once the kids are off to college. Just don't tell them.

 

[ProspectiveBum]

My kids are still in high school and middle school, but DW and I each have a sibling who never launched, and continue to live with a parent in their 40s and 50s. Our kids have been told in no uncertain terms that they will not be repeating that pattern. Barring any financial hurdles between now and college, we’ll pick up the tab for typical state school tuition, room and board, so they should be able to get through school without significant debt. COVID-19 has definitely been a huge curveball for many new graduates, so I wouldn’t expect a recent graduate to launch under these circumstances. The plan to to stay in our current home at least until the kids are launched, so I’d have no problem having them back for a bit after college if they ran into similar head-winds.

 

[mountainsoft]

those contemplating early retirement should be considering that their children may very likely still be in their house when they are ready to retire.

I thought that was going to be us... We are planning to retire in three years, and our daughter was still living at home at age 30.

Thankfully, we were finally able to find her an affordable apartment and she moved out around the end of January, just before COVID hit. Despite being laid off from one of her jobs, she is still doing well and enjoying her new home. Of course, the $600 boost in unemployment benefits was a huge factor in her success, so I do worry about her long term outcome now that it has ended. At least she was smart enough to save the vast majority of that extra income and could probably survive for a couple years even if nothing else changes.

 

[ESRwannabe]

Interesting piece by Pew Research Center that suggests (to me, at least) that those contemplating early retirement should be considering that their children may very likely still be in their house when they are ready to retire. Analyzing the latest census data, they find that 52% of adults aged 18-29 now live with their parents, the most since the Great Depression.

https://www.pewresearch.org/fact-ta...or-the-first-time-since-the-great-depression/

Obviously, that is going to put a damper on retirement plans that contemplate a move.

And at the same time we have NASDAQ going to the moon despite recent minor pull back.

The real economy is absolutely FUBAR. I heard recently the Spanish flu went on for two years and that was with zero precautions taken. So "herd immunity" was reached as fast as possible is my guess.

Warren Buffet isn't buying. He seems to be getting out of the dollar from what I can tell. Just sold out of WFC, other banks probably to follow. He may be 90 years old, but I haven't seen any evidence of mental decline in his interviews. I wonder what he is thinking right now.

My personal portfolio has done quite well. Not as well as QQQ, but I've recovered all losses and then some. Don't feel that good about it though. Feel like the "Sword of Damocles" is hanging over the US.

 

[donheff]

Makes the post college dating scene a little weird. It would feel like being back in HS.

 

[Dtail]

DGF's son lives with us, but is 20 y.o. and going to school. It would take a lot for us to accept any of the other 4 children moving back in with us. Sometimes things need to be toughed out, although sometimes they just can't be.

 

[mrfeh]

I wonder how much of this is a trend, vs. a side effect of COVID and the high unemployment rate.

I read an article this morning that indicates the pandemic has exacerbated the situation.

 

[Midpack]

Though Covid unemployment has made it worse, the stats before that were higher than I thought. It’s understandable that many 18-21 yo’s are still at home, but less so 25-29 yo’s. And the highest since the Great Depression is noteworthy IMO.

 

[66Sally]

We have a 21 yo and 24 yo who both graduated from college this past May. We feel they have been fortunate to find jobs but both of them have only temporary jobs. One has a temp job in Virginia and his employer provided an affordable rental option. He has been looking for another job for when this one ends in October but no luck yet. He will be reluctantly coming home to live with us until something else comes along. Our 21 yo DD is living with us and saving money for a down payment on a small condo. She is almost there but we don't recommend she purchase until her job becomes permanent. We charge our DD rent but I have told her she can have it back for her condo purchase if she doesn't "go off the rails" in the mean time.

 

[pacergal]

Both of our kids have boomeranged back once, due to unforeseen circumstances.

Just because they came back, did not mean they weren't still paying their way, just saving rent money to get back on their feet.
Our kids are always welcome to live here if necessary, however, they both value their independence, and moved out as soon as they could.

We still retired on time as planned. And they are doing well.

 

[Freedom56]

I don't understand what the issue is. I recall moving out of my parents home at 24 after graduating from university at 21 and starting my career. My parents recommended that I save some money by staying at home which I did and my first move out was to a new home that I bought at age 24. My wife didn't move out of her parents home until 24 after we married. She saved money also. For myself, I didn't want to live in an apartment and I didn't want to rent. So I saved money for a down payment on a home.

Are some people expecting their kids to move out at 18?

 

[Gumby]

...Are some people expecting their kids to move out at 18?

That was my parents' expectation, and we all did (actually, my brother was only 17).

 

[Midpack]

I don't understand what the issue is. I recall moving out of my parents home at 24 after graduating from university at 21 and starting my career. My parents recommended that I save some money by staying at home which I did and my first move out was to a new home that I bought at age 24. My wife didn't move out of her parents home until 24 after we married. She saved money also. For myself, I didn't want to live in an apartment and I didn't want to rent. So I saved money for a down payment on a home.

Are some people expecting their kids to move out at 18?

No one said it’s an all or none expectation - it’s a significant trend that began long before Covid-19. And it’s not about 18 year olds, they’re most likely to stay at home among the 18-29 cohort. The fact is way more 18-29 year olds are living with their parents for a variety of economic reasons - and that could impact retirement (this audience).

 

[Freedom56]

No one said it’s an all or none expectation - it’s a significant trend that began long before Covid-19. And it’s not about 18 year olds, they’re most likely to stay at home among the 18-29 cohort. The fact is way more 18-29 year olds are living with their parents for a variety of economic reasons - and that could impact retirement (this audience).

There is a good reason for that. It's called cost of living versus the lack of high paying jobs for unskilled or semi-skilled labor. Young adults who choose formal education leading to a profession do much better in this world. Those that choose to have kids first before securing a steady job or career path, usually end of dependent on others (family, government welfare).

 

[tb001]

I wonder how much of this is driven by college age students either choosing not to attend for the year/semester or not being able to live on campus.

Our kids are still young, but if they want to contribute to rent and household upkeep, I’ll welcome them living with us at 20! We’ll be old enough to appreciate the help then.

 

[candrew]

Are some people expecting their kids to move out at 18?

Not necessarily, but some kids at 18 believe themselves to be exempt from living under Mom & Dad's rules while living under their roof.

Our two sons were out and on their own at 18, choices they both made for their own reasons (the youngest enlisted in the Marine Corps at 17, turning 18 while in basic). The oldest felt he should come and go as he pleased, party with his friends, etc. and as a result he was given the choice between living at home under our rules or being shown the door. He chose the latter.

That was over 20 years ago. Both have lived independently (struggling at times), put themselves through college and are raising families of their own.

 

[Gumby]

I wonder how much of this is driven by college age students either choosing not to attend for the year/semester or not being able to live on campus.

Our kids are still young, but if they want to contribute to rent and household upkeep, I’ll welcome them living with us at 20! We’ll be old enough to appreciate the help then.

If you read down through the study, it has always counted kids living in a dorm at college as living in their parents' house, so COVID related college closures do not affect the number.

 

[tulak]

I don't understand what the issue is. I recall moving out of my parents home at 24 after graduating from university at 21 and starting my career. My parents recommended that I save some money by staying at home which I did and my first move out was to a new home that I bought at age 24. My wife didn't move out of her parents home until 24 after we married. She saved money also. For myself, I didn't want to live in an apartment and I didn't want to rent. So I saved money for a down payment on a home.

Are some people expecting their kids to move out at 18?

I’m doing this with DS and his GF (both 21). Decided pre-CV. There can be downsides, but based on their personalities, I think they’ll get a big boost financially. I’ll know how it pans out in a few years.