In recent years, younger generations have been opting to live at home rather than buying their own. This is a trend that is being seen all over the nation, a consequence of increasing house prices, collections of student debt, and inadequate job pay. One of the highest ranking areas for young adults staying at home is in the Bay Area.
According to siliconbeat, San Jose has seen the largest decline in millennial home ownership in the nation. Between 2005 and 2015, there was a 34.8 percent drop within this buying bracket.
Such a dramatic change is a reflection of many factors within the country’s current economy.
The housing website Abodo reported that, while 33.3 percent of millennials live at home in the San Jose area, only 8.6 percent are unemployed. Following, just under 40 percent of those residing with their parents have already obtained an associate degree or undergone some education at the collegiate level.
While an education and job security equated independence in the past, today’s ratio of income to rental prices do not permit this. Abodo reported that San Jose’s average income for millennials living at home was $1, 614 in2015. The median monthly rent for the same area lies at a crushing $1, 894.
Housing prices are even steeper, averaging at $737, 077. Abodo pointed out that, in order for a millennial to even afford a 20 percent down payment, they would have to save 15 percent of their yearly income over a span of almost 28 years.
These prices have allowed a mere 20.2 percent of young adults to become homeowners in the San Jose area, stated siliconbeat. In fact, there is a higher rate of millennial ownership within the San Francisco and Oakland region, which sits at 20.5 percent.
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For a more in depth look at these statistics, take a look at Abodo’s most recent research here.
