Adults still living at home is causing a luxury boom

[Canada Goose]

A record number of young adults in the US are currently living at home, and all that saved rent is sparking a luxury boom.

Recent data from the US Census Bureau shows that nearly half of young Americans between the ages of 18 and 29 are living with their parents today. That's a historical high not seen since the Great Depression era, Morgan Stanley analysts wrote in a Friday note.

The analysts estimated that around 48% of young adults are living with parents in 2022, similar to levels seen in the 1940s.

The levels of young adults living at home peaked at 49.5% around 2020, coinciding with the outbreak of the COVID-19 pandemic. The data came from a Pew Research Center analysis, USA Today, the University of Minnesota, and Morgan Stanley research.

That's great news for luxury retailers, because saving on daily necessities like rent and groceries is freeing up disposable income for discretionary spending, a team of Morgan Stanley analysts led by Edouard Aubin found.

"This is of course not the only reason luxury-goods consumers are getting younger in the West (social media playing also an important part) but we see it as fundamentally positive for the industry," the analysts wrote in the note.

Factors like high rental costs, enrollment in higher-education programs, and delayed marriage are also keeping young adults at home, the analysts wrote.

"When asked about the incentives to move in with parents, 51% of the young adults said that it was to save money and 39% of them said that it was because they could not afford rent," according to a December 5 survey from PropertyManagement.com. The survey platform Pollfish conducted the survey of about 1,200 US participants online on December 1.

Nearly half of young adults in the US are living at home with their parents, and all that saved rent is fueling a luxury boom

Around 48% of young Americans are living at home with their parents in 2022, similar to levels seen in the 1940s, Morgan Stanley analysts estimated.

www.businessinsider.com

 

[Rawtid]

If you’re in a shared living situation and you don’t use it to stack money, you’re a bum. Male or female.

 

[Shang Tsung]

If your commute ain't bad and you don't care about privacy, you'll be stupid not to live with your parents.

Now, what you choose to do with the money you're saving on rent is a different story

 

[ORDER_66]

So they are happy these people are spending for luxury goods but pay no attention how bad and expensive the housing market is that these folks HAD to move back home to survive... wow what a bunch of malignant capitalist b*stards...

 

[Canada Goose]

I thought these adults still living at home was financially contributing to the household. Seems like some parents are letting their kids keep their whole paycheck Don't contribute to rent or food, how are these boomer parents surviving in this inflation era taking care of adults who don't contribute NOTHING financially to the household?

 

[Alvin]

I thought these adults still living at home was financially contributing to the household. Seems like some parents are letting their kids keep their whole paycheck Don't contribute to rent or food, how are these boomer parents surviving in this inflation era taking care of adults who don't contribute NOTHING financially to the household?

yeah now that's wild lol

 

[L&HH]

Lol a few years ago I had an argument with someone I know like this. They were living at home spending all they money on designer. I was trying to convince them to save and invest they shyt. Fell on deaf ears.

 

[Rawtid]

I thought these adults still living at home was financially contributing to the household. Seems like some parents are letting their kids keep their whole paycheck Don't contribute to rent or food, how are these boomer parents surviving in this inflation era taking care of adults who don't contribute NOTHING financially to the household?

I wouldn’t make my daughter pay any bills, but she better have a FAT savings account.

 

[FishNGrits]

Some people lack shame man


How you gonna floss designer in
The streets and then go home an ask ya mama what’s for dinner at 30 years old

 

[desjardins]

If moving in with your parents was the financial power move people online act like it is the %s of it happening would be more flat as a lot of people would properly save move and never come back
What it really is are people who are struggling for a multitude of reasons and obviously can't save/budget alone as functioning adults, going home and continuing those bad money habits. this time with more disposable income that they waste on luxury goods and cars

 

[Huda2daf]

When I lived at home and was grown I felt guilty as fukk buying shyt frfr.

 

[Anton]

If you’re in a shared living situation and you don’t use it to stack money, you’re a bum. Male or female.

what money are they stacking? anything under $100k/mo is not really anything special.

 

[Paper Boi]

if you living at home to save that's one thing

if you living at home and wasting your money on luxury items you have your priorities completely fukked up

 

[FishNGrits]

what money are they stacking? anything under $100k/mo is not really anything special.

Rent/Morgatage is a huge expensive. If you not paying that you should be saving or knocking out any debt you have. And 100k a month are y’all that out of touch ?

 

[spliz]

All I know is in NYC it's damn near impossible to live on your own with a regular job. And I mean just to get in the door u gotta make atleast 40x the rent. U gotta have great credit. Add on the the rent is high as fukk even for a studio if u aint tryna live in the middle of the hood. So say u want a 1 bedroom and that shyt is like $1700 a month. That means u gotta make damn near 70k per year with good credit just to get in the door. Look at the average income for a New York adult and u know that's some bullshyt. lol