If you are a young adult who is still living at home, you are not alone: A recent study from Zillow found that 21 percent of millennials in the Phoenix area are still living at home.
Sarah Mikhutarian with Zillow told KTAR News 92.3 FM that high rent prices in the area are causing young adults to move back in with their parents simply because they cannot afford to live on heir own.
Mikhutarian said that number jumped from 9.7 percent in 2005. The trend in Phoenix reflected one nationwide: Almost a quarter of millennials were living at home in 2016, compared to just 13.5 percent in 2005.
A key driver in this substantial increase? “The affordability crisis that is happening across the nation, especially in large metro [cities].”
Despite the housing boom — and bust — the cost of rent continues to grow faster than incomes, she added
The median rent in the Phoenix area is $1,364 per month. The average renter also spends about 27 percent of their monthly income on rent.
Mikhutarian said this is a testament to the long-lasting effects of an economic downturn.
“It’s difficult to get your feet on the ground,” she said.
But Mikhutarian said she was hopeful that the trend would progress upward in the near future.
“Hopefully with those factors of rising incomes, more and more people will be able to save to rent on their own or even use on a down payment to buy a home,” she said.