"A potentially worrisome trend is emerging among young adults. Instead of landing a job and moving to the big city after graduation, many are moving back into their childhood homes instead. About 1.5 million more adults under 35 live with their parents today than a decade ago. That's a 6.3% jump, more than double the rate of growth for the young adult population overall."
"The issue is affordability. Over the past decade, urban rents have climbed about 4% per year, while wages for full-time workers have increased by only 0.6% annually. That means it's harder than ever to live in a big city on the typical salary - especially if you're a new graduate without much work experience. The situation is even more challenging for aspiring homeowners:"
"Put simply, there isn't enough housing. As an economist, I know that when demand rises faster than supply, prices have to increase. And supply is severely limited in the places where people most want to live: big cities such as New York and San Francisco. In most of these cities, planning and zoning laws prevent developers from building enough to meet demand. For example, rezoning a plot of land from commercial to residential often requires mountains of paperwork."
About 1.5 million more adults under 35 live with their parents now than a decade ago, a 6.3% increase, more than double young adult population growth. Urban rents have climbed about 4% per year while full-time wages rose only 0.6% annually, making city living unaffordable for many recent graduates. The median U.S. house price rose roughly 90% in ten years, pushing the median first-time buyer age to 38 from 31. Insufficient housing supply in desirable cities, constrained by planning and zoning rules, rezoning paperwork, and neighbor objections, limits construction. Relaxed zoning in Austin spurred construction and reduced rents by up to 22%.
Read at Fortune
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