Young Adults Living at Home in the US Are Fueling a Luxury Boom (businessinsider.com)
Similar trends are being observed in Britain as well.
I've read about times in the past where it was far more common for kids to remain with their parents - or at least in close proximity, even after they get married and have kids of their own.
It's a lot different than what I remember when my generation was at that age. Most kids couldn't wait to turn 18 so they would finally be free of their parents. Or in other instances, the parents couldn't wait to boot the kid out of the house.
- Nearly half of young adults are living at home in the US — a historical high not seen since the Great Depression, per the US Census Bureau.
- They are helping fuel a luxury boom, Morgan Stanley analysts say.
- Living at home is freeing up their budget and leaving them with more disposable income for spending.
A record level of young adults in the US is currently living at home, and all that saved rent is sparking a luxury boom.
Recent data from the US Census Bureau shows that nearly half of young Americans between ages 18 and 29 are living with their parents today. That's a historical high not seen since the Great Depression era, Morgan Stanley analysts wrote in a Friday note.
The analysts estimate that around 48% of young adults are living with parents in 2022, similar to levels seen in the 1940s.
The levels of young adults living at home peaked at 49.5% around 2020, coinciding with the outbreak of the COVID-19 pandemic. The data was compiled from a Pew Research Center analysis, USA Today, the University of Minnesota, and Morgan Stanley research.
But that's great news for luxury retailers, because saving on daily necessities like rent and groceries is freeing up disposable income for discretionary spending, per a team of Morgan Stanley analysts led by Edouard Aubin.
"This is of course not the only reason luxury goods consumers are getting younger in the West (social media playing also an important part) but we see it as fundamentally positive for the industry," the analysts wrote in the note.
Factors like high rental costs, enrollment in higher-education programs, and delayed marriage are also keeping young adults at home, the analysts wrote.
"When asked about the incentives to move in with parents, 51% of the young adults said that it was to save money and 39% of them said that it was because they could not afford rent," according to a December 5 PropertyManagement.com survey. The survey of about 1,200 US participants was conducted online by survey platform Pollfish on December 1.
Similar trends are being observed in Britain as well.
Similar themes are emerging among British youth
Similar themes are emerging across the pond in the United Kingdom, where about 42% of young adults lived with their parents in 2021. That's the highest level on record, based on data compiled from 1996 onwards by the Office for National Statistics and Morgan Stanley research.
I've read about times in the past where it was far more common for kids to remain with their parents - or at least in close proximity, even after they get married and have kids of their own.
It's a lot different than what I remember when my generation was at that age. Most kids couldn't wait to turn 18 so they would finally be free of their parents. Or in other instances, the parents couldn't wait to boot the kid out of the house.