Zillow is out with a new study, which, in itself, is not news inasmuch as the Seattle-based real estate mega-site is always out with a new study. This one, however, has real news, although many probably suspected what the study confirms: More millennials age 24-34 live with their moms than at any time in the last decade. Presumably, a decade ago, many if not most millennials were living with mom because they were still kids.
Nationally, according to Zillow, 21% of 24-34 year olds live with their moms, up from 13% in 2005. Where's the epicenter of this trend? El Paso, TX., which has the biggest percentage of millennials living with Mom, almost 34%--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.
Zillow reasons that the decision to stay with Mom could be driven by affordability or culture, not quite a journalistically sound assumption, but Zillow is not a journalistic organization. Thus, it states in words that would never be used by a legit publication, "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% during 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%. Other markets with a small percentage of millennials living with Mom include Seattle, Denver, and Portland.