While most young adults start their post-college existence with a new job and a new apartment, many millennials are moving back home because of rising rental rates and stagnant wages. This shift has taken hold in New York City, with many 24 to 34 year olds staying with their mothers as rental rates reach record levels.
According to a new report from real estate listing website Zillow, 30 percent of New Yorkers aged 24 to 34 years old are living with mothers, which places the city in the top ten nationally. New York ranked eighth in the report. The city with the highest percentage was El Paso Texas, which posted a rate of 33.9 percent.
Like many cities across the country, New York has been steadily growing its population of struggling young residents over the past decade. In 2005, the percentage of 24 to 34 year olds living with their mothers was at 20.9 percent. The figure grew to 27 percent four years later.
“With today’s high rents and lagging income growth, many young people are having trouble setting aside enough money to buy their own home, delaying home ownership,” said Zillow Chief Economist Dr. Svenja Gudell. “Living with their parents may allow young people to continue to do things like continue their education, save enough money for first and last month’s rent, or save for a down payment.”
The median rent in the US stands at $1,389. In New York City, that figure more than doubles. According to a report from Forbes a few weeks ago, Manhattan is the worst place to rent in the whole country. The average monthly rent in the borough is $4,374.
It doesn’t get that much better when you go outside of Manhattan. According to Douglas Elliman’s March rental market report, the median rental price in Brooklyn jumped 2.7 percent to $2,775 year-on-year. The figure puts the median rent gap between Manhattan and Brooklyn at just $525.
While expensive rent may be the main cause of the swelling ranks of failure to launch adults, there are also cultural factors in play. According to the study, some of the places that have a high percentage of parentally-attached millennials contain a large Hispanic population. The study claims that Hispanics are more likely to live in “multigenerational households” than other ethnic groups.
New York City is not the only place in the northeastern United States that broke into the top ten. Stamford, Connecticut placed ninth at 28.7 percent while Philadelphia placed tenth at 27.1 percent.