Student Debt Drives Young Grads Back Home

Today’s young adults are more likely to live with parents into their 20s than young people a decade ago, according to the Federal Reserve Bank of New York.

Although youth employment has increased with the economic recovery, growing student debt appears to be driving young adults back home. The New York Fed reported a that in New York state, a $10,000 increase in student debt per graduate is associated with an additional 2.9% rise in the rate of living with parents.

This delay in household formation may create pent-up demand for housing down the line, as the economy further improves and young workers pay back their student loans.

Read more at Liberty Street Economics