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Fix housing: Kick out your kids

By Judy Martel · Bankrate.com
Wednesday, May 2, 2012
Posted: 5 pm ET

Earlier this week, I wrote about the drop in the rate of homeownership, now at its lowest level since 1997. One of the biggest reasons for the overall drop is the falloff in the number of new households. The Census Bureau reports that the rate at which Americans set themselves up in new homes or apartments is recovering slightly, but its growth is still down considerably from prerecession levels.

New household growth typically comes from young adults moving out on their own, but the recession has resulted in many of them being forced to move back in with Mom and Dad. The weak job market is largely to blame. College and post-college graduates who can't find jobs and are carrying student loan debt are finding additional expenses like rent or a mortgage unattainable.

According to the Pew Research Center, more than a fifth of young adults between age 25 and 34 live with their parents, the highest level since the 1950s. The job market has been slowly improving for young people, but analysts say that due to the effects of the recession, many young people are also delaying the responsibilities of adulthood and choosing to stay in school longer or live with their parents rather than finding a place of their own.

As the job market continues to improve, these analysts believe, young adults will fly the coop and begin setting up households, which will improve the housing market.

Do you live with your parents, or do your adult children live with you because they can't afford their own place?

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4 Comments
Brian Wood
June 17, 2012 at 11:07 pm

I would have no problem with my kids staying at home. However,
they would have to follow the rules of the house, just as they
had to when minors. After college, if earning money, they
would be required to pay rent, do their own laundry and pitch
in to help pay for their food. I don't believe in letting adult
kids live at home for nothing; it only teaches them not to be responsible. Also, they would have to pay for their own car, including insurance and repairs. And no girl friends sleeping
over either!

LAC
June 15, 2012 at 4:02 pm

In my parents youth it was common for families to live all together and take care of one another. My mother grew up with both sets of Grandparents living under the same roof. Everyone pitched in too! Back then women didn't work outside the house as much as they do today but they all got together to cook, clean and helped with preserving their food and growing a garden. The men all pitched in the money they earned from jobs to be able to afford the mortgage and bills which were significantly less back then (people didn't have credit card debt and other debts like today) but my parents both grew up in the depression era and they had ALL their needs met simply by everyone pitching in and helping! The generation of today is taught to be independent of anyone's help and to do everything their own way! I say hogwash!!! If you can all pitch in and help out then it makes life easier for all!!!

Chris
June 09, 2012 at 6:20 pm

We've told our 18 y/o that he doesn't have to rush out. As long as he is in school or improving his lot in life, he can stay at home until he marries and has his own family. We love our son and place value in some of the European models where multiple generations of family live together. I can't say we will all live together after he marries but we don't rule it out either. Of course, the one caveat is that after he earns his Master's he has to start making financial contributions to the family based on his income.