Part 3/5:
The Impact on the Economy
The rise in young adults living with their parents has significant implications for the U.S. economy. The Federal Reserve estimates that young adults who move out of their parents' homes would spend around $13,000 more per year on housing, food, and transportation. This slowdown in household formation can lead to a drag on consumer spending, which is a crucial driver of economic growth.
Additionally, the lack of affordable housing options in popular areas, coupled with the burden of student loan debt, further exacerbates the challenges faced by young adults. Addressing these issues will require a multi-pronged approach, including policies to increase the housing supply, provide assistance for homebuyers, and address the student debt crisis.