SEATTLE, May 8, 2018 /PRNewswire/ -- Young college
graduates are more likely to be living with their parents than they
were before the housing bubble, especially in places that had a
more exaggerated boom and subsequent crash.
A new Zillow® analysis of Census data finds the share of college
graduates in their twenties increased the most between 2005 and
2016 in Las Vegas and Riverside, Calif. Nationally, 28 percent of
recent college graduates live with their parents, up from 19
percent in 2005.
When the housing bubble was at its height, it was much easier to
get a loan, and the building boom meant there were plenty of homes
for buyers. For young college graduates at the time, moving out was
a more manageable option. Today, tighter lending standards, high
home prices and constrained inventory make breaking into the
home-buying market more difficult for recent graduates.
Between 2005 and 2016, the share of recent college graduates
living with parents increased from 13 percent to 39 percent in
Las Vegas, which experienced one
of the most dramatic boom and bust cycles among the nation's
largest markets. Near the end of 2004, homes were gaining nearly 50
percent in value each year. When the market collapsed, home values
plunged by 62 percent, more than any other major U.S. market.
Riverside, Calif. saw a similarly
intense bubble and crash. The share of recent graduates living at
home there increased from 27 percent to 51 percent in 2016.
"In the mid-2000s, lending standards and an abundant supply of
homes made it easier for recent grads to move out and form their
own households instead of living with their parents," said Zillow
senior economist Aaron Terrazas.
"Those market conditions have changed drastically over the past
decade as we went through the housing bust. Adding to that, as many
millennials who recently graduated into the Great Recession can
attest, underemployment or more precarious jobs make it much harder
to save up enough to move out. When rents keep climbing and
competition is fierce for the most affordable homes, living with
mom and dad can be a good option to build up some savings."
As more young graduates live with parents, the share living with
a romantic partner was on the decline. In every large metro, a
smaller share of college graduates in their twenties live with a
partner than did in 2005. Las
Vegas had the biggest decline in the share of recent
graduates living as a couple, falling from 47 percent to 29
percent.
|
Share of College
Graduates
in 20s, Living with Parents
|
Share of College
Graduates
in 20s, Living with Partner
|
Metropolitan
Area
|
2005
|
2016
|
2005
|
2016
|
United
States
|
19%
|
28%
|
44%
|
34%
|
New York,
NY
|
36%
|
42%
|
30%
|
22%
|
Los Angeles,
CA
|
28%
|
38%
|
29%
|
23%
|
Chicago,
IL
|
25%
|
34%
|
38%
|
30%
|
Dallas, TX
|
10%
|
22%
|
51%
|
39%
|
Philadelphia,
PA
|
30%
|
38%
|
36%
|
28%
|
Houston,
TX
|
23%
|
28%
|
41%
|
38%
|
Washington,
DC
|
16%
|
29%
|
38%
|
29%
|
Miami, FL
|
29%
|
45%
|
36%
|
24%
|
Atlanta,
GA
|
14%
|
26%
|
45%
|
34%
|
Boston, MA
|
20%
|
30%
|
37%
|
29%
|
San Francisco,
CA
|
25%
|
26%
|
34%
|
27%
|
Detroit,
MI
|
29%
|
35%
|
42%
|
37%
|
Riverside,
CA
|
27%
|
51%
|
41%
|
29%
|
Phoenix,
AZ
|
12%
|
22%
|
49%
|
34%
|
Seattle,
WA
|
10%
|
16%
|
49%
|
38%
|
Minneapolis,
MN
|
13%
|
22%
|
45%
|
43%
|
San Diego,
CA
|
14%
|
25%
|
38%
|
32%
|
Saint Louis,
MO
|
18%
|
22%
|
50%
|
40%
|
Tampa, FL
|
13%
|
27%
|
47%
|
38%
|
Baltimore,
MD
|
18%
|
27%
|
43%
|
36%
|
Denver, CO
|
12%
|
15%
|
48%
|
44%
|
Pittsburgh,
PA
|
24%
|
29%
|
39%
|
35%
|
Portland,
OR
|
11%
|
22%
|
57%
|
41%
|
Charlotte,
NC
|
10%
|
21%
|
47%
|
40%
|
Sacramento,
CA
|
14%
|
33%
|
46%
|
33%
|
San Antonio,
TX
|
14%
|
32%
|
46%
|
31%
|
Orlando,
FL
|
11%
|
24%
|
46%
|
33%
|
Cincinnati,
OH
|
13%
|
23%
|
53%
|
41%
|
Cleveland,
OH
|
23%
|
29%
|
43%
|
36%
|
Kansas City,
MO
|
11%
|
19%
|
52%
|
45%
|
Las Vegas,
NV
|
13%
|
39%
|
47%
|
29%
|
Columbus,
OH
|
9%
|
15%
|
50%
|
43%
|
Indianapolis,
IN
|
12%
|
21%
|
56%
|
41%
|
San Jose,
CA
|
22%
|
26%
|
46%
|
32%
|
Austin, TX
|
5%
|
13%
|
44%
|
32%
|
Zillow
Zillow is the leading real estate and rental marketplace
dedicated to empowering consumers with data, inspiration and
knowledge around the place they call home, and connecting them with
the best local professionals who can help. In addition, Zillow
operates an industry-leading economics and analytics bureau led by
Zillow's Chief Economist Dr. Svenja
Gudell. Dr. Gudell and her team of economists and data
analysts produce extensive housing data and research covering more
than 450 markets at Zillow Real Estate Research. Zillow also
sponsors the quarterly Zillow Home Price Expectations Survey, which
asks more than 100 leading economists, real estate experts and
investment and market strategists to predict the path of the Zillow
Home Value Index over the next five years. Launched in 2006, Zillow
is owned and operated by Zillow Group, Inc. (NASDAQ:Z and ZG), and
headquartered in Seattle.
Zillow is a registered trademark of Zillow, Inc.
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