A recent study found that it is America’s seniors, not Millennials, that have contributed to the uptick of households formed this year. But why?
Goldman Sachs and The Pew Research Center, in separate studies, found that despite the economic recovery, there is no decline in the number of young adults who live at home with their parents.
But Jed Kolko, Chief Economist at the Terner Center for Housing Innovation at University of California-Berkeley, tells CityLab that housing analysts and professionals should keep in mind the difference between household formation and headship rate. An increase or decrease of headship rates are the ones that can gauge whether or not there is a cultural and behavioral shift to how adults are living.
He also adds that “Millennials won’t necessarily form new households when they do leave their parental homes.”
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