Tuition is going up, up, up, and that means many young adults are being forced to rack up mountains of debt in order to graduate college. However, graduates are simply not finding the jobs they were expecting upon completion of their degrees, and that means young adults are moving back in with the folks.
A recent study found that 31 percent of adults aged 18-34 are living with their parents. This in turn is contributing to a home ownership rate this at its lowest in 19 years. Although the national unemployment rate has fallen in recent months, the labor participation rate reveals that a growing number of young people are dropping out of the workforce altogether.
Bussiness Insider has the full scoop:
Increasing numbers of young Americans are heading to college, where they’re racking up debt to pay for rapidly increasing tuition costs.
Those graduating are being confronted by a challenging jobs market, which eventually leads many to just drop out of the labor force altogether.
This in turn has led to an increasing delinquency rate for student loan borrowers.
So, it’s no surprise that young people are increasingly opting, perhaps out of necessity, to live at home with their parents.
In his latest monthly chart book, Deutsche Bank’s Torsten Slok charts the rise of 18-34-years-olds currently in this position.
And there are a lot.
Slok actually sees this as a bullish force to come in the housing market, which is characterized by a homeownership rate at a 19-year low.
Clearly, with so many young adults unable to find work and tied to tens of thousands of dollars in student loan debt, the economy is not going as swimmingly as some would have us believe.