Recession, low wage force millennials to live with parents

Global Business

Recession, low wage force millennials to live with parents 1

In many places around the world, living with your parents as well as other relatives is common. That hasn’t been the case for Americans since the late 1800s. Now, for the first time in more than 130 years, research shows young adults are more likely to live with their parents than outside the home. 

CCTV America’s Roza Kazan reports on the trend toward multi-generational living. Follow Roza Kazan on Twitter @rozakazancctv

Recession, low wage force millennials to live with parents

Recession, low wage force millennials to live with parents

In many places around the world, living with your parents as well as other relatives is common. That hasn’t been the case for Americans since the late 1800s. Now, for the first time in more than 130 years, research shows young adults are more likely to live with their parents than outside the home. CCTV America’s Roza Kazan reports on the trend toward multi-generational living.

Anita Chavez-Berry never thought she’d live with her in-laws. But when husband Daniel’s teaching contract in Japan abruptly ended, their family faced a choice.

“We didn’t have jobs yet so were financially speaking not very stable and were worried about burning through savings very quickly,” Anita said.

The Berrys said they’re lucky to have an option. Finding jobs after seven years abroad was no easy task even for these highly-educated parents in their late 30s.

Daniel’s mother, Mary, who said she’d like to have her granddaughter so close, could sympathize.

“I wouldn’t agree to this if I thought they were slackers, they aren’t slackers at all. Anyone of my sons is not welcome here if they’re coming for a free ride, I don’t give free rides.” Mary said.

32 percent of Americans, 18 to 34 years old, are now live with their parents. 18 percent of the total population, that’s 57 million people living in multigenerational households, up from 12 percent or 28 million in 1980.

The 2008 recession hit young adults hard. Many, not able to afford living on their own, moved back in with their parents. Student loan debt and rising rents are still making it difficult for some to move out. 

Realtor Alison Keifer from Toll Brothers, said many of her clients now ask for multigenerational additions to accommodate their elderly parents with separate living areas, bedrooms, garage doors and even entrances.

Eight of the last 20 homes she’s sold were for multigenerational households.

“Families combining their lives, both parents are working; they’ve got young ones they don’t necessarily want in daycare. It’s great to have grandparents that can live in the home and watch after little ones,” Keifer said.

A house with six bedrooms and six and a half bathrooms costs $1.3 million. Adding the multigenerational suite cost this family a little over $60,000, which, with a 30-year mortgage, comes to just a few extra dollars a month.

Compare that to the cost of a nursing home or retirement facility, which can range from $2,000 to $8,000 a month. 

For now, Anita and Daniel Berry just want to be financially independent.

An American dream they hope one day to achieve.