News

Echo of “Great Depression”: Majority of U.S. Young Adults Live with Parents

One of the many developments to expect during a deflationary depression is family members from different generations moving in with each other.

Here's a quote from the 2020 edition of Conquer the Crash:

In a depression... Mom and Pop move in with the kids, or the kids move in with Mom and Pop. People start living in their offices or moving their offices into their living quarters. Businesses close down.

This represents much of what's been going on in 2020.

Indeed, here's an excerpt from a Sept. 4 Pew Research Center article titled "A majority of young adults in the U.S. live with their parents for the first time since the Great Depression":

The coronavirus outbreak has pushed millions of Americans, especially young adults, to move in with family members. The share of 18- to 29-year-olds living with their parents has become a majority since U.S. coronavirus cases began spreading early this year, surpassing the previous peak during the Great Depression era.

In July, 52% of young adults resided with one or both of their parents, up from 47% in February, according to a new Pew Research Center analysis of monthly Census Bureau data. The number living with parents grew to 26.6 million, an increase of 2.6 million from February. The number and share of young adults living with their parents grew across the board for all major racial and ethnic groups, men and women, and metropolitan and rural residents, as well as in all four main census regions. Growth was sharpest for the youngest adults (ages 18 to 24) and for White young adults.

The share of young adults living with their parents is higher than in any previous measurement (based on current surveys and decennial censuses). Before 2020, the highest measured value was in the 1940 census at the end of the Great Depression, when 48% of young adults lived with their parents. The peak may have been higher during the worst of the Great Depression in the 1930s, but there is no data for that period.

YoungAdultswithParents

The share of young adults living with parents declined in the 1950 and 1960 censuses before rising again. The monthly share in the Current Population Survey has been above 50% since April of this year, reaching and maintaining this level for the first time since CPS data on young adults' living arrangements became available in 1976.

Young adults have been particularly hard hit by this year's pandemic and economic downturn, and have been more likely to move than other age groups, according to a Pew Research Center survey. About one-in-ten young adults (9%) say they relocated temporarily or permanently due to the coronavirus outbreak, and about the same share (10%) had somebody move into their household. Among all adults who moved due to the pandemic, 23% said the most important reason was because their college campus had closed, and 18% said it was due to job loss or other financial reasons.