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Why Are Half Of All 25-Year-Olds Living With Their Parents? The Federal Reserve Answers
Back in 1999, a quarter of all 25-year-olds lived with their parents. By 2013 this number has doubled, and currently half of young adults live in their parents home.
While the troubling implications for the economy from this startling increase are self-evident, and have been extensively discussed both here and elsewhere (and are among the key factors pushing both the US and global economy into secular stagnation), a just as important question is why are increasingly more young adults still living at home.
While we admit there is something morbidly grotesque in none other than the Fed taking an active interest in this most devastating development (for the simple reason that it has been the Fed's own policies that have unleashed not only the $1.3 trillion wave of student debt but an army of Millennials in their parents' basement), it is the Fed itself that has been the latest to attempt an answer.
Here is the Fed's response to "Why Are More Young Adults Still Living at Home?"
Economist Maria Canon and Regional Economist Charles Gascon noted that many factors have been suggested for why young adults return to or continue living at home, including significant student debt, weak job prospects and an uncertain housing market. The table below breaks down the percentage of 25-year-olds who were living at home for the period 2012-2013 in each state in the Federal Reserve’s Eighth District as well as in the country as a whole.
Labor Market and Higher Education
One potential reason for the increase in young adults living with their parents is the labor market. The authors highlighted research showing that individuals at the beginning of their careers often need more time to transition into the labor market. This is reflected in the unemployment rates of those between 21 and 27, which are often higher than for other age groups.
Earning a college degree can help with labor market outcomes, as young adults with a college degree are more likely to live independently. However, additional research has shown that the underemployment rate for recent graduates was about 40 percent during the Great Recession. Canon and Gascon noted: “An implication is that a significant portion of recent graduates were earning lower wages than what they should have been, given their education.”
Also affecting many young adults is that they started their post-education careers during a recession. Canon and Gascon discussed a study noting that those entering the job market during a recession pay a price for about a decade. They wrote: “That’s because they start work for lower-paying employers and slowly work their way up toward better-paying jobs.”
Housing Market
The nation’s recovery may also play a role in young adults remaining at home. As the economy has grown, so have house prices. Canon and Gascon pointed out that national house prices have increased 21 percent since 2012, and rental prices have grown even faster in many areas. They wrote: “Because most youth would be first-time homebuyers, they have no housing equity to regain from the rebound in house prices after the housing crash.”
In the Eighth District, housing generally remains more affordable. The authors noted that the median house costs 3.3 times the median household income nationally, but less than 3 times the median household income in most District states.
Student Debt
According to a 2014 survey, more than half of first-time homebuyers said student loan debt was delaying saving for a down payment for a house. A 2015 report from the Federal Reserve Bank of New York found that a $10,000 increase in a student’s average debt increases the probability of living with parents or other family members by the age of 25 by about 2 percentage points.
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To all the 25-year olds out there reading this from their parents' basement, all we can add is that these are actually all correct. There is just one thing left to add: for all of the above you can thank, who else, the Fed for blowing the biggest debt-funded asset bubble in history.
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Hmmm....
Spoiled and wimpy cause their parents are deadbeats. You know, you can always raise a child to be unspoiled and educated. Just depends on how much your willing to work, which looking the baby boomer generation in general, NOT THAT FUCKING MUCH HUH?
The parents are deadbeats, because, lets face it, the he 90's were way way easier to 'MAKE A LIVIN IN' than now.
The poor millenial has had their brain overloaded with a gazillion advertisements, all thanks to the parent's generations extreme capitalist greed to sell every-fucking-thing-under-the-fucking-sun to the Millenials.
Now the poor, braindead millenial has to compete in a shrinking job market, once again, thanks to the parent's generation that decided, to save a few pennines, they were going to ship all American made goods to the Chinese, which the Chinese, being way way way smarter than the Americans, but way poorer, copied. Now they make every-fucking-thing-under-the-fucking-sun.
The poor, braindead, brainwashed millenial now decides that they have no skills, since the parents are deadbeats who hold paper-pusher jobs (yeah thank you so much baby boomers, for showing us how you can have a degree in psychology and somehow become a bigshot). Unfortunately, the millenial has to take out a loan, because the deadbeat baby boomer parents decided that they need to drive a new car every 5 years because joneses. And also because, you know, once you turn 18 your 'on your own' which I guess means 'on your own way to becoming a debt slave' since every college in this country, whose administration is a bunch of baby boomers, decided they too need to fleece every-fucking-thing-under-the-fucking-sun and in this way, raised tuition to obscene levels.
So now, this poor, brainwashes, braindead, useless-degreed, 100k debt millenial is sitting on the dead beat parents couch and doesn't want to do anything.
I have to say, I really dont blame 'us'. The friends I know living at home are doing it so they can keep their paychecks instead of forking it over to a hedge-funded baby-boomer controlled apartment complex.
So, in essence, you reap what you sow. And you sowed your seed, and that is the Millenials. So blaming us is essentially blaming yourself, your genetics, and the obscene capitalist culture that is America today. Its YOU.
YOU sent manufacturing overseas
YOU created a paper-pushing economy
YOU created these megacorporations
YOU allowed lobbying at untold levels
What is a 21-28 yr. old supposed to do about any of the massive problems America faces today?
And its those problems that created the culture that we grew up in.
*EDIT: Another case in point: practically every article on Zerohedge about corruption, lobbying, the Federal Reserve's ineptitude, etc etc has 0 to do with the millenials, and everything to do with YOU (baby boomers). So talking about how us Millenials complain about everything, while posting your woes on every article on ZH is beautifully ironic.
I sympathize, notwithstanding I am not worthy, being cursed with the wrong temporal DNA, but your post is too hortatory, too diffuse...too negative.
Pick something and oppose it. Or, just go do something, anything, original, i.e., all by yourself, and leave the world to its own devices. You cannot oppose an entire generation and its institutions. That is like hurling yourself into a wall...it's self-defeating.
Regards...
You seem to mis-identify me. I grew up overseas (a Gen X-er) and luckily had my education... a Bachelor's Degree (debt free/paid cash for all schooling; student loans are unheard off and virtually non-existent in our part of the world) from the oldest established university (2nd after Oxford) in Asia, and not in the US (thankfully). All I could say is I pity the American Educational System..it is not your fault, the lot of the Millenials nowadays...and neither mine.
most of this crap started when we were 21-28, so wtf were we supposed to do. we need to flush this overflowing toilet of a country, politicians first. and then fill in the sewer pipe and start over. make bribery illegal, and bring back a little thing called justice.
your parents also put you in day care and let the TV and video games baby sit you and gave you medals for doing jack shit. what are you supposed to do about the problems we face? fix them... or bitch and moan
Bitch and moan, bitch and moan. Excuses, excuses. It's always someone else's fault. Blah-blah-blah. Bull crap. Once you're 18, don't let the door hit you in the butt. Come raid the fridge anytime, and we will help with school -- with cash, that is, not by signing our lives away to the banksters -- but otherwise it's sink or swim time baby. That's the way my parents were with me, and that's the way I raised my boys who both have good jobs and own homes. Well, mortgages. I guess it's encouraging to know that half of the country's young adults aren't whining ninnies and future zombies.
There is an office of the economy called The Federal Reserve. If there are no jobs for anyone, it is the fault of the people at the Federal Reserve.
Moreover, how can anyone make money when cartels control all the rackets?
We no longer have conscription.
Its comming
The Myth of American Meritocracy
How corrupt are Ivy League admissions?
http://www.theamericanconservative.com/articles/the-myth-of-american-mer...
What sort of mind aspires to attend one of those institutions of higher brainwashing?
MERITOCRACY. What is that?
"The more irrationality thrives, the more it divides humanity, since everyone believes they are right and are allowed to do so."
http://meritocracyparty.org/
Hey kid, you’ll still be way too young and immature at age 20 to have a sip of beer but since you just turned 18 you’re more than responsible enough to take out $75K in loans for a worthless degree. Now hurry up and sign so I can go cash my commission check!
Cause al dey shit is free there
Half of 25 year olds live at home? Maybe they should not have voted overwhelmingly for the jug eared, Muslim worshipping, America hating scumbag. Maybe they should not vote overwhelmingly for Hitler with a clit. They will do that as well.
I am trying to be sympathetic but just Fucking can't find a drop of caring for you.
Reap what you have sown Bitchez.
I will laugh at your down arrows.
blame the victims
with racist bigotted nonesense
powerful argument, not.
It is very amusing to read these criticisms of zombies who voted for a nigger, who apparently singlehandedly wrecked the entire world, all by hisself.
All people who voted for Obama must taken to the fields and shot.
All niggers must be taken to the fields and shot.
All muslims must be taken to the fields and shot.
All Mexicans must be taken to the fields and shot.
All baby boomers must be taken to the fields and shot.
All Libtards must be taken to the fields and shot.
I will laugh at your down arrows.
Student loans are the fleecing of the Middle Class and transferring future earnings to the elite Higher Education Class. The Higher Education Class is the Bankster and .Gov Class: Mission Accomplished!
The new American Nomenklatura class
Is that a TRS-80? Love the wood panels.
Our Obama economy is a fuck-face economy where only those willing to suck the puss filled cocks of government succeed.
String the fuckers up
MENA yearns for boots on the ground, problem solved.
The only thing that kept me out of college was high skool.
P.S. The only reason a 25 year old would be living at home is because they are too lazy to work.
They all want to work with their college ed and make $90K a year right out of the gate.
Mom and Dad just hasnt explained to them how it works.
How it works in my house is, if you need help for a couple of months, fine. But after that you better learn how to pound nails, drive a truck, work in a clinic, or live in a tent.
Dig ditches, clean toilets & wash dishes too...
I guess they could take a boat ride to Europe! <sarc>
Or, forget college debt and go build a house, using their own hands, with a little help from their friends. Cut the fucking bankers out of the loop altogether!
What? You don't know how to build a house? Well, that's how we learn stuff. Like in college the prof would say, "Go research this, write a paper, and give a presentation in front of the class." College doesn't teach us; we teach ourselves. Find a way!
Weak job prospects gee I wonder why?
Since 2000, All Employment Growth Has Gone to Immigrants
The future???
THE WALKING DEAD And Katrina: The “Zombie Apocalypse” Already Happened—And Can Happen Again
Work is for chumps. If you don't get a racket in this system and buy out your slave contract, you will die a slave. For people who never rise to the level of employed slave in a "career", there used to be some kind of job hopping to make ends meet with welfare to fill in the gaps. Now all that's over.
From this day forward there are only sycophants of the regime, and peasants.
Blame Mom and Dad for not kicking their little ass's out of the crib.
The answer is that politicians sold out to China and gutted the economy because they needed the money for their foreign wars.
So they say student debt is much higher, job market sucks and because job market sucks, housing is unaffordable? Wow....I never knew.
WE NEED THESE CENTRAL BANKERS SWINGING FROM TREES
Why don't they just print themselves higher paying jobs? Fucking lazy kids.
I get harassed by the government because i stood up to the sorry ass mother fuckers................HAHAHAH...........im still kicking their ass........These numb nuts have tried to murder me and have failed so far................HAHAHAHAH
I've been posting on ZH for sometime now, that a debt based system of money is fatal to K selected populations. I'm especially addressing this comment to the millenials and under 25 crowd.
Under 25's and youths will not have children until their security needs are met. Their secuirty needs cannot be met unless they go into massive debts. Costs are high because everything has been monetized, and the cost of money is due to the cost of private credit, which is an expensive type of money.
Debt systems need to put the future in hock to pay for today.
Most boomers AND most millenials have no clue about how things work. I posted earlier about a sovereign system that basically is the answer to how to set up a proper money system. It should NOT PASS YOUR NOTICE, that a continent sized country ran this experiment successfully. This cannot be ignored.
Most ZH denizens appear to be unable to read and comprehend what I wrote, and that includes people of all generations. You, should make every effort at comprehending what I wrote. Make the effort.
The fatal debt based system encourages greed, and is extralegal. It's grabbing of the future then disenfranchises the youth - one cannot ignore this. The claims of the youth are legitimate. They (you) are taking a screw job.
It is without question that Wall Street in concert with banks exported American jobs to China. Captains of industry WERE GREENMAILED, that if they didn't export the josb they would be bought out. Exporting of jobs allowed Wall Street to take wage arbitrage, and hence false profits for a time. Wall street sold patrimony of the past (your patrimony) for a few shekels today. In the course of this gambit, they destroyed the future by exporting typical renewal path for the youth, that is - earning their stripes in industry as knowledge is passed on from elder to youth. China gambit short circuited the future.
Housing bubble bid up prices in asset inflation and was false economics. There were voices of concern during this period, but everybody got while that taking was good. This is a fact. We all turned a blind eye to the rampant corruption. Whenever money is involved people seem to have weak ethics. You millenials are also weak when it comes to understanding money.
Go back and read what I wrote earlier about sovereign money. I am addresing you millenials especially! Pay attention. If you don't change the money system you won't make it.
My even earlier post about how Fed actually works is an example of how brain dead most people are when it comes to the money system. Even after all these years of QE, people still don't understand how it works. I explained exactly how the FED works, but it is not a simple sound bite, so those who cannot focus for more than a few seconds are unable to grasp the concepts.
Fortunately, the service economy has been the bridge to the 21st century. Bill told us it would. Beau coup shekels for all!
Guess I shouldn't make light of such a dire situation, but hell that's how I roll. Nice post, good advice.
Here's a great article from ClubOrlov that attempts to explain the same thing as Mefo. Pardon the length, but it is by no means the whole article at http://cluborlov.blogspot.fr/2015/09/the-financial-industrial-revolution...
"An ingenious and fateful response to this financial instability came with the foundation of the Bank of England in 1694. A group of about 1500 investors agreed to assume the royal debt—since renamed the “national debt”—in return for a monopoly on the right to issue their own notes (loans, that is) to the public guaranteed by the reliable repayment of the government’s debt through taxation. These notes—which subsequently became known as British pounds—soon started circulating as the currency of the land.
This currency-as-debt was still ultimately denominated in precious metals, but the presence of the royal imprimatur, backed by the power of the state to meet its obligations by forceable taxation, made its indebtedness “as good as gold” for the creditors.
As this new arrangement sprung into being, nobody seemed to ask the very obvious and important question:
Why is it that a group of private investors was granted the unprecedented license to automatic public taxpayer backing and, if need be, outright bail-outs for their own privately-issued notes (loans), which were allowed to function as the currency of the land, displacing precious metals?
Since the power of the state to tax its citizens rests on a perpetual right, it follows that any private loans backed by tax receipts can also be issued, and reissued, in perpetuity. The result was a perpetual national debt used to back up perpetual private lending.
But the private bankers immediately took a further step, making full use of the fractional reserve principle of the goldsmiths: they proceeded to lend far beyond the actual amount of government debt on their books. Thus, only a fraction of the notional “money” they generated out of thin air was formally backed by the taxpayer.
Which leads to another very important question that also wasn't much discussed, then or now:
What if confidence lapses, there are bank runs, and it turns out that the government guarantees are insufficient?
The modern answer to this question is... bail-outs; it turns out that the taxpayer is on the hook not just for the government debt, but for all the private debt issuance as well.
But that's not all. Not only were these private loans backed by the taxing power of the state, but the bankers issuing them took full advantage of the relaxation of traditional prohibitions on usury. This allowed them to charge as much interest on these loans as the market would bear. In other words, they were able to skim off a generous profit for themselves simply by virtue of issuing money which they alone were allowed to freely create!
Sounds outlandish? You bet! ? Yet this is the essence of the financial revolution, which Alexander Hamilton, one of its admirers, accurately called “the English system,” and it remains the basis of our financial system today."
Your magical "Sovereign" money system is just Ellen Brown's Greenbackerism by another name. That doesn't make it unique or special.
No one cares if you want to pat yourself on the back because you "explained QE." "Explaining" QE is pointless. It is a prima facie fraudulent sham. I don't have to have a degree in leprochology to know that leprachauns are total baloney.
The Federal Reserve system that we have right now is run by bankers. The bankers' solution to any problem is always CTRL-P.
The Greenbacker system that you want would be run by politicians, instead of bankers. Just a wild guess, but the politicians' solution to any problem will be CTRL-P. If you disagree, prove me wrong. Find me some honest politicians. Oh that's right, you can't, because "honest politician" is an oxymoron.
Your breathless assertions about how politicians hitting CTRL-P to shower us with Sovereign money and institute a new golden age of rainbows and unicorns make Paul Krugman seem like a reasonable, level-headed fellow in comparison.
By the way, and I've asked this before, but you have never answered. How many goons with badges and guns will be needed to implement MEFO-Sovereign-Money-topia? If someone wants to use bitcoin, or gold, or clam shells as money in MEFO-topia, will he be taken to jail? Room 101? Or someplace worse?
The hubris of your monolithic, state-worshiping, freedom-denying central planning would make the Soviet Politburo blush.
The answer to the question is because the economy is totally AWESOME!!!!
Helicopter parents who allowed them to be slackers and to take 6 years to graduate college with a worthless degree.
Define education. IMO modern "education" teaches you to be a usless little statist, and up to your tits in enslaving debt. Critical thinking, accurate history, marketable skills are clearly Not what students are learning. I believe it's foolish to chant "education is something they can't take away from you" when the modern education itself has taken your future from you.
Looks like most of the commenter does living with their parents.
Look at your comments there. Childish. Egoistic. Can't takes responsibility. Blaming others for your missery. Look again at your comments. No wonder your country looks like shits.
- - -
Living with parents.
1. Do you pay for your parent utilities bill? Rent cost? Did you takes responsibility of cleaning at least your part of that house?
2. Do you pay for that house maintenance? That house mortgage?
3. Do you take care your Daddy & Momma? Or they the one that takes care of you? Even for your laundry?
4. Some comments said "it good living like KINGS in your own home. While you can PLAY GAMES in front of your parents TV. Are you understand what it is to be an ADULT? You want to be treated likes adult, but acts like a spoilt brat??
5. The immature of thinking shown already. Blaming others for your missery. Oh, i can't get SLAVE JOBS cause govt, corporations, greedy boss, move it out of the country. Bla.. Bla... Bla...
Isn't you're being taught that your future is in your hands?? So, if you FUCKED in live? IT IS CAUSED BY YOUR OWN MAKING!!
You want to work? While there are no jobs? Why don't you try to MAKE WORKS for you? Isn't business can be start even while you're still at home? When everything still free?
You're sorry lazy ass don't want to do that!!! And blames everybody else (even i saw someone blames their own MOTHER!! The one that concieve you for 9 months! Risking her own life, labouring you. Nurtured you, when you is just nothing but a piece of meats. And you now have the GUTS to blame her for your own sorry ass live? Hey SATAN, do you know what you treats your parents??)
- - -
You're a the kind of PATHETIC, LOOSER, SORRY ASS that doesn't deserved to be even BORN to this earth.
You LAZY atittudes, thinking live and other people should FEDS you for the rest of your sorry ass live. What a waste of the live thay's been given to you.
I already earns my OWN money when i still in middle school. By highschool i already PAID MY OWN TUITION. By 2nd years i ALREADY SUPPORTING MY PARENTS, PAID BOTH OF MY SISTER UNIV'S TUITIONS, UNTIL THEY'RE ALL GRADUATED!!
You're pathetic whining just makes me loath to your nation. You're nothing but a slave nigga' that you yourself mocks them up.
Pathethic....
Why did you pay for both your sisters tuition?
Were you not screaming at them in CAPS LOCK?
"I already earns my OWN money when i still in middle school. By highschool i already PAID MY OWN TUITION."
It might be no harm to pay for some english language tuition for yourself...... or not, I gues you don't need to spell to do a lot of high paid jobs. Anyway, fair play for gettting a job.
Hey, I was working five jobs while I was a fetus still in the womb, Mr. 'we dont need no steenkin' spell check'. Middle school, huh... you must have been a late bloomer, or maybe the town idiot from someplace like Managua.
All completely irrelevant.
Who has all the power? Who has all the money? Who controls job creation?
It's not any of us, its the US Aristocrat class, and they have decided that its time for the big Fuck You to the rest of us.
Wait - don't most ZH readers want people to disengage from the economic system? So why is there so much hate for those who chose not to be wage slaves or minimize their participation in the economy and hence reduce their consumption by living at home?
The more under 30 year olds did this, the faster the system will crash.
I would say today's youth are far more intellligent than their elders. They have figured out that it is all a sham and are reducing their footprint accordingly.
The biggest industry growth not making headlines is "Propaganda Sowing Seed Spreader." Only skill required is being able to lie effectively enough to get 2 up arrows so that any newcomers to the Situation On The Ground will consider their comment to be correct and assume it themselves.
ZH members know the rent is too damn high.
Most of the comments these days are from unserious trolls.
Only 15% of debt instruments today are held by the transaction economy... that is regular producing economy.
70% of debt iinstrments are held by banks, and 15% remaining are held by financial institutions such as insurance and shadow banks.
This means that 85% of the finance cost of money supply vectors to pay off debts held by a tiny group of finance predators. Those who create money get to earn usury in perpetuity as debt instruments grow and cannot be paid by the very credit they generated. Debts will always exceed their credit generation - it is a mathematical certainty.
Those who keep blaming the millenials are NOT PAYING ATTENTION, to the usury aspect of credit systems. If a bond is rolled over, it then goes exponential as the former usury is now principle of new bond.
This is exactly how Greece got into trouble, and it is how private debtors get into trouble as well. The game is tilted. It is rigged.
Until one addresses the rotten money system, then they have no leg to stand on when pointing fingers at millenials. Millenials in future will also have no leg to stand on if they don't address the money system.
All humans are drivenby price signals. Money is part of the price system.
Most people can think no further than their nose, and they only know that something has X price and that then determines their behavior. The average person has no idea of the path and nature of money in their wallet. They also think that labor or working equals money inputs to their wallet.
Actually labor is only part of the production system, and goods make prices which then fetches money from supply. Money has to be available in suppy and goods/services have to meet the money to pay labor.
It is much more complicated than simple working as labor to then make money. There have been plenty of times in the past when money was not available and people could not work.
Both Boomers and Millenials are hypnotized with false ideas that crumble upon any sort of inspection.
Stop blaming each other, you both are victims. It is true also millenials are getting the shittier end of shit covered stick than the boomers did.
Highly interesting writing. When's your book coming out?
Complete losers.
I am 36 years old and living woith my mother. Or is she living with me?
Woohoo my first post and it is utter nonsense.
You are living with eachother.
Welcome to the post-bailout economy, Bernanke saved you, aren't you thankful? ^^
Once upon a time, nuclear families were normal. As a matter of fact, in many modern societies, nuclear families aren't frowned on. However, in America, nobody is supposed to have any responsibility for any one else, least of all family. Why not look at this another way - another adult in a home can add to the household in many ways - physically, financially, emotionally. Oh, but I forgot, one's children as well as elderly relatives are nuisances for which no one, least of all family, owes a responsibility. Likewise, children who live at home obviously would never be responsible for taking care of their parents or grandparents in any way in exchange for their parents' (or grandparents') largess. Essentially, we live in a society where we are supposed to be all out for ourselves and those who can't take care of themselves 100% and those who help those who can't are seen as losers by the rest of society. It is rather sad when you really think about it!
well said
High Debt
Low Income
Lets say you have an average middle class family
Chances are middle class family (lets call them the Johnsons) consist of 4 people or more (Mother Father, Daughter Son+ middle child maybe).
Lets say the Johnsons were lucky enough to buy a home, lets say they have 400,000$ left on their mortgage.
Lets say the bread winner of the family (the father) makes on average about 70,000$ a year before taxes.
Lets say they spend about 900$ a month on food.
Lets say they spend about 3000$ a year on electricity.
Lets say they spend about 45,000$ a year on mortgage.
Lets say one child is going to college still , and tuition is about 8000$ a year.
Lets say the eldest child maybe ages around 20-27 earns about 20,000$ a year before taxes.
Lets say phone bill + internet and telecoms/tv is about 200$ a month
Lets say they have one car and put about 20$ in gas into it a week ( 960$ a year)
Lets say the 20-27 year old has about 30,000$ in student loans.
Lets say they have about 2000$ a year in "Misc. Expenses" additional (w.e you can think of)
Lets say home insurance is like 8000$ a year.
You endup needing about.
70-80K a year just to cover expenses (no discretionary income).
Combined the father and college grad make about 100,000$ before taxes.
Lets say the effective total tax rate on them is 28% (which is probably lower than it actually is but w.e)
So in theory, the family would have to get into debt every year for an additional 2,000$ to break even with their living standard or cut back.
given those conditions which I think could endup being fairly typical given todays world, the family is left with no discretionary money or they have to get into debt to pay for for something or they are in default on one of the loans (credit cards/student loan) w.e
There isn't a lot of room for the millennial to get out of the house, considering if he does the father would have to earn an additional 20,000$ a year in order not to lose his house.
So what should the millennial do? live in the basement and help pay the mortgage while staying in default of his student loans, or should he leave the basement take his income go live in a shit-hole for 1500-2000$ a month that he cant even afford? and ontop of it not eat anything but noodles while his parents and siblings get foreclosed on.....?
Logic dictates that the millennial would stay in the basement and help pay the mortgage.
So millenials will remain basement dwellers for the 30 year term note or until inflation wipes away the debt.
If you want to know how long the recession/depression is going to last the math to me seems to be simple
Step 1
Take all the mortgages in America, put the time left on the loans (years to pay) in column A, select all of column A and take an average.
Lets say All Americans on average have 20 years left on their loan.
I would expect millenials to live at home till they are 40+ years old.
And
Discretionary spending will not rise until atleast 10 years from now (when the mortgage payments start to shrink a bit).
$ 45,000 a year on a mortgage! $3750 per month... What area of the country do you live in?
Seems a little high.... for a starter home.
I wish my mortgage was only 3750 per month.
The scenario above is not my scenario, my scenario is much scarier .
As a family unit we spend over 60,000$ a year on housing, we have been lucky thus far to be able to afford it, needless to say with a lot of gray hair.
New York is satans asshole, but its the only place in the country where you can still make money if you work hard.
If we endup losing "the game" as I have come to call it, we are outa here, fuck America, better off defaulting on everything taking the money and moving to Greece , because being poor in Greece is much more enjoyable than being "rich" in the U.S. anyway.
Moving to Greece has essentially become the "nuclear option", we often talk about just "pushing the button" and getting the fuck out of here but the things you own endup owning you, you put so much effort into building, that its hard to let go of what you built.
Sometimes I actually hope everything collapses so I no longer have an excuse to stay here.
I honestly dont get why anyone making under 30,000$ a year would live in New York, id be on the first plane/boat/train out of here heading for some island and I would figure it out from there.
To live 10 years in Greece all you need is 30,000$ and a fishing pole.
To live in America, your money is irrelevant, you need a job that pays 50k+ a year or you will slowly degrade into some kind of zombie killing yourself so the bank can eat your labor.
Also a starter home?
Does such a thing even exist?
I thought "starter home " was a marketing gimmick.
The Chinese have bought everything hand-over-fist, there are no "starter home priced anythings" anymore, you put an offer on a house, in two days some chinese guy offers 15% more than you.
29.5 hours x $7.25 an hour. Hmmm.
AUDIT THE FED. NOW!
Its pretty much a race between Trump and Sanders.
Sanders voted against auditing the Fed.
Trump probably owns shares in the Fed.
Long story short.
No.
Not possible in our life-time, the Fed will fail on its own way before any audit ever happens.
End the Fed. Destroy the Fed- kill the motherfuckers. Do you think these pedophile, sex pervert, bribe taking fuckers in Congress can be trusted to audit the Fed? Hang all the traitors in congress - most dumbass sheeple americans should be banned from voting until they pull their heads out of their asses and go through an extensive detox program to get rid of the methane that has rotted their brains.
its fucking manufactured that way. the system does not want men or women to be responcible people. they want them to be dumbed down good obidient workers..............unless people man up and over throw the system 95% of the population will end up as a worker class. they will be peasants...................funny as shit right............zerohedge should make a stupid fucking post about how they are in on it and they are really cut throat slave drivers slowly building their empior
IMO, nothing at all wrong with multi-generational homes. Living in the basement and having meals with family is a hell of a lot smarter than paying another property tax bill. The job situation is another story.
I noticed some very large houses near Bethlehem in Israel
They were houses built and being built by Israeli Arabs
They held 3 generations of families
It took several years to build
Cement block frame, cement floors
but it was all paid for when done
smart, I say
Stupid housing prices, stupid education fees and pathetic job prospects...it's a lottery in that every participant in this BS game thinks they are going to win when only 30% will.
But remember the fed, society and Donald trump will be there to remind you you're just a loser with allllllllllllll this increeeeeeeeedible opportunity being handed to you!
I wonder if those 'basement children' complain about their boomer parents receiving Social Security?
Who could possibly blame the young people in the USA for having no future if they remain within their country? I am sure they mostly grew up with daycare, starting school as soon as mother could free herself from her duty of raising them. Sending them to one activity or another until they collapse at bedtime exhausted. Add to that, watching dad watch sports all weekend, mothers with any spare time rushing around doing half-the-job at home because work comes first in this nation.
Short changed only begins to describe their dilemma. We pissed away their future while watching gay parades, the Trashian Family and others live. Being raised in modern american was equivalent to A Drive-Thru childhood.
And now...they pay for their fathers' sins of doing nothing, assuming everything and having the privilege of dying sooner so being spared of tax slave status in a nation overtaken by globalists who are nothing less than master thieves.
Everybody who sees their paychecks hit complains about lazy baby boomers getting social security welfare.
By the time I hit 25 years old I had played in a pro band (unsuccessful), traveled the world, shagged some great looking girls ... and I was convinced that the good part of my life was pretty much over. 30 years later, after having a pretty successful life, I'm not sure that I was necessarily wrong. In recent years I blew a huge chunk of my money and lived like a 25 year old for a while. It hurt my retirement plans biig time but I don't regret spending any of it. Note to sugar babies: by the time you hit 25 you're too old. Life is cruel.
well, now we know what your fantasies have been over the years, lol
I love the way these bankster fuckers always talk about the "difficulty of saving for a deposit".
Um, maybe the problem is that it's impossible to save for the home outright because bankster pricks have created an economy where asset prices run up faster than incomes - where labor's share of income is destroyed relative to capital's share of income - hence it's damn near impossible to avoid massive debt or a life of parasite-feeding rent-payment if you're not already asset-rich and want a roof over your head that's close to work.
Labor has been losing out to Capital since Neoliberalism and Monetarism took over in the late 70's.
Now cue the utterly propagandized, confused, "useful-idiots", and the paid-for 1% fluffers around here who keep complaining about evil Socialism and how poor Capitalism is suffering so much.
Yeah right. If so then explain how
this: https://philebersole.files.wordpress.com/2012/08/productivity-and-real-w...
plus
this: https://philebersole.files.wordpress.com/2012/08/econ-pol-inst-inequalit...
equals, in your warped mind, Labor (Left) beating down Capital (Right)?
Heaven forbid, awkward facts! I must be some kind of SOCIALIST! Um, no, just because I take issue with the Rightist True Believers around here talking bullshit does not make me Left. Team Red/Blue, Left/Right, Black/White is simplistic nonsense because the world's a complex grey zone: Aurea Mediocritas bitchez.
Because their parents let them.
My GOD, someone got PAID to conduct this "study"!!
I am in the wrong fcuking business.
Why is the economy failing the young? It's called debt, taxes, and regulatory burden. Too much of all 3 everywhere.
Don't forget the bubbles,
which makes prices go sky high and some things are pritty hard to buy if you'r not very wealthy from the start.
Why Are Half Of All 25-Year-Olds Living With Their Parents?
Because they can. Smarter to learn, earn and save at home, deferring marriage, divorce, children, etc... Doing so does not have the stigma that it did for our generation.
It's all very simple. Work and be broke and don't work and be broke. In some circumstances not working supercedes worknig. Depending on your marital status and dependent status on tax forms of course.
These young adults basically are struggling to obtain the level of resources to exist in the system. Kind of surprised at the level now,I think that is what makes it noticeable.
Well this has been economic policy for 30 years and in the beginning there was only a few so nobody cared now why anybody should care is beyond me. If this 48% want it different then they need to attack those creating it this way.
What should happen,birthrate falls,50 years on population starts shrinking freeing up resources one more.
Not in this world anymore,central banker\elite policy is to import people in to prop up the head count resulting in a continued restriction of resources.
No point for the existence of those 48% now in this world.
Yep it took me this long, all the illegals, visa fks to take what jobs where left. after china & india raped us. NAFTA included...
Boehner is strapping more debt to their backs.
Paul Ryan will 'Equalize the Economy".
Just need… another… Republican….
I raised 2 kids now in their early 20's. ONe lives with me and the other lives with their grandma. And I've never seen such a complete disconnect from the real world. One of them was talking with her buddies and they were going on and on about how "grownups" act. I'm serious; they actually used the words grownups. And to make things worse they had college degrees and lived in dorms for 4 years. But they still think of themselves as children. The 24 year old has struggled to find a decent job since most jobs for hs grads are in warehouses. He stayed stuck on the couch for years until he decided he wanted to do something with his life. He makes 11.50 an hour and is saving for a car. Neither of them offer a cent.
I have friends who have children that have moved out and that seems to be even worse. These young people cannot earn enough to come close to the type of life they think they should have so when financial disasters happen (which is ALL the time) they have to be bailed out. And that's serious money, getting cars fixed, helping with lease deposit, etc. They have no savings and if something happens you gotta help them or they lose their job. I've actually had friends cry about this shit.
If there were decent earning opportunties of course things would be vastly different. But the bottom line is that these "kids" were raised with expectations that can no longer be filled and that's hard. Everything is based on money in some way and if you don't have any it's hard to date, socialize and get involved in a lot of things. I feel bad but I do think that expectations are way to high. But that's easy for me to say with my income and savings. But that took decades to get.
"Also affecting many young adults is that they started their post-education careers during a recession. Canon and Gascon discussed a study noting that those entering the job market during a recession pay a price for about a decade."
Way to go, you were born during the greatest period in US history i.e. post WWII, baby-boomer days. Too bad your generation fell asleep at the wheel and drove the entire country over a cliff.
Who the Hades told these kids, or held them at gunpoint, to rack up tens of thousands of dollars of college debt?
snatch you idiot, these kids were pre programmed ..by the reptile elite brain washed society in the west. few of us can fight the brain washing..want to test your level? tell me that homosexual lifestyle is normal based on biology of sex organs. dick in ass is normal function right?
Just wait until deflation hits and then your school loan takes 95% of your gross income, for the next 30 years. Excellent wayto teach economics to the young.
No one actually believes that most student loans are going to be repaid by the borrower, do they?
they're not allowed to default. they're indentured servants now for the rest of their lives.
There are all sorts of programs that enable the borrower to pay a small amount over several years and then have the debt "forgiven", which is to say, dumped on the taxpayers. The only rub is that the amount forgiven must be counted as income for tax purposes, but I am sure they are working on that as well.
This is why people are living in their parents basement, http://www.zerohedge.com/news/2015-10-27/free-trade-vs-american-jobs
We have exported 28.7 million jobs? Think this has something to do with it? Ignoance sure is bliss.
Do you think 28.7 million jobs represents the "Free" in "Free" Trade? "Free" Trade has cost us a fortune.
That picture with the kid with glasses at the computer is great. Reminds me of The Far Side.
Students have gone into extreme debt to earn degrees in fields for which there are no jobs. Every second-tier liberal arts school has tried to portray itself as the next Harvard and pumped up their tuition accordingly. Students who bought the lie are now observing that a lot of Ivy League graduates are likewise unemployable and they have all been played like a piano.
grow the fuck up. In 1973 when I graduated high school I was still 17. Three weeks later at 18 I signed a lease on a 350 dollar a month apartment and never looked back. I was making 2.85 an hour as an apprentice meat cutter beginning the Monday after I turned 18. I had a room mate and we shared rent. We as a nation have 25 year olds living in the basement because their parents are mush brains. If I had called my dad at age 24 for a 2 hundred dollar car repair he would have laughed at me. He raised us to be responsible, period. You do your kids and grandkids a huge disservice when you bail them out and give them everything their little heart desires.
We as a nation have raised a generation of spineless, hair less, barney song singing co dependants as children. Hell keep them on your insurance plan until you die and leave them the house, why stop at age 26? Man the fuck up America. Our country is turning to shit and the 25 and unders will be running this country some day. In full body armor as they pedal their bicycles on the sidewalks of your neighborhoods.
Good day all.
Because all of the millions of illegal aliens have caused a housing shortage.
Do not know about others, but I have a feeling that the lack of employment opportunities is one of the huge reason for these change in the pattern of youth's living style. A boost in inspiration funds to young poeple for SB or creating new employment opportunities can help a lot.