More and more young adults are choosing to live at home with their families than buy a home. About 22 million adults between the ages of 18-34 lived at home in 2013 -- a 4% increase from 2006. Parents are welcoming these late (housing) bloomers with open arms: 68% would prefer if their adult child continues to live with them according to a new study by Fannie Mae.
Doug Duncan, chief economist at Fannie Mae, says there are several financial reasons young adults are reluctant to move out. Some want to shore up their finances before getting married; others are working in low-wage jobs; some are choosing to graduate later from college and are living at home to reduce expenses.
Related: Millennials are missing Wall Street gains: Bankrate survey
This trend has had a big impact on the housing market. Analysts say that the housing recovery has stalled in part because of the lack of demand by new home buyers.
Related: Home price growth is slowing: Here’s why
According to the National Association of Realtors, the number of first-time home buyers in May was 27% -- a record low. The historic average is 40%.
Yet a new report by online real estate firm Trulia suggests that young adults are showing interest in home ownership. Trulia found that younger Americans are buying homes at the same rate as they did in 1997.
And as Yahoo Finance's Rick Newman wrote in a recent column, living at home for as long as possible may be the smartest decision young adults are making these days.
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