52% of young adults are living with their parents amid the inflation crisis.
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According to Pew Research Center roughly 52% of 18-29-year-olds live with their parents. This is the first time that this statistic has surpassed 50% since the peak of the Great Depression. Although this trend has been increasing for decades, experts believe that this is a residual effect due to the Covid-19 pandemic.
"Boomerang kids." A term used for young adults who move out of the parental home and return only after losing a job or a roommate are becoming the norm. After job losses, rising rent prices and rising house prices, it has become harder and harder for young adults to get and stay on their feet.
With the rise of "boomerang kids," many parents are feeling the strain on their own finances. A NerdWallet study found that most parents are still paying for some expenses of their adult children. In fact, parents could be losing roughly $227,000 in retirement savings. The NerdWallet study also found that "Almost 3 in 5 parents with kids 18 and older (59%) have had adult children living with them for more than five years."
Young adults cited that their main reasons for living at home was to save money, and the inability to afford rent. Only about 40% of millennials are charged rent by their parent and about half pay less than $500 per month. With not paying rent most millennials are spending their extra funds on travel, entertainment and other non-necessities.
In fact, Americans in general are saving less and spending more. The U.S. Bureau of Economic Analysis shows that Americans are saving just 2.3% for every $100 after taxes. This down from 7.5% as of Dec. 2021.
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