SEATTLE — More millennials age 24-34 live with their momsi than at any time in the last decade, according to Zillow’s latest analysisii. In the U.S., 21 percent of 24-34 year olds live with their moms, a number that’s been steadily increasing since 2005, when just 13 percent lived with their moms.
El Paso, TX has the biggest percentage of millennials living with Mom, almost 34 percent — a 12 percentage point increase since 2005. Other places with a large percentage of millennials crashing with their moms are Miami, Los Angeles, Philadelphia, and Ventura, Calif.
U.S. rents are on the rise and incomes have not kept up, especially for young adults, who have faced a sluggish job market over the last decade. Over the past year, rents have increased almost 3 percent, while incomes have increased just 1.8 percent. The decision to stay with Mom could be driven by affordability or culture. In general, Hispanic families are more likely to live in multigenerational households, and many of the places with a large share of young adults living with Mom also have large Hispanic communities.
“With today’s high rents and lagging income growth, many young people are having trouble setting aside enough money to buy their own home, delaying home ownership,” said Zillow Chief Economist Dr. Svenja Gudell. “Living with their parents may allow young people to continue to do things like continue their education, save enough money for first and last month’s rent, or save for a down payment.”
The median rent in the U.S. is $1,389 per month. Zillow forecasts rents to increase about 3 percent over the next 12 months to a Zillow Rent Indexiii of $1,426.
Omaha, which made Zillow’s recent list of hot housing markets to watch in 2016, has the smallest percentage of millennials living with Mom, — 11 percent. Other markets with a small percentage of millennials living with Mom include Seattle, Denver, and Portland.
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. Zillow also sponsors the bi-annual Zillow Housing Confidence Index (ZHCI) which measures consumer confidence in local housing markets, both currently and over time. Launched in 2006, Zillow is owned and operated by Zillow Group (NASDAQ: Z and ZG), and headquartered in Seattle.