My brother graduated from a four-year university two years ago, with a degree in Biology. He should be on his way to starting his career. But, instead he is living at my parent’s house, working an entry level job, just trying to figure out his next step. Getting his own place would be too much a strain for his wallet right now.
In a similar situation, I have a friend graduating in the spring of next year, who will likely be in the same boat. She will be a young, employable college graduate, with debt up to her eyeballs, and no way to even think about trying to get a place on her own.
Unfortunately, these two stories are just a few examples identifying a trend across America. The creation of households is much slower than in recent years because of high student debt and all these other factors. Sadly, when graduation time comes for most students, looking for a new place isn’t even on their radar. So, they pack up their independence and head back to Mom and Pop’s house until they can land some sort of job, fingers crossed it would be using their degree—As many as 20 percent of this graduating generation may be making similar arrangements to my friends.
Not only the Housing Industry, but even furniture industries and such should expect to sell their goods at a reduced rate. While there could be a surge of demand when a turnaround for the industry happens, it is safe to say that in the meantime, multi-generational housing is what’s “in.”