America’s young people have been hit so hard by the crappy economy that they can’t even get out the door. A fresh study from Pew Research reveals that 36 percent of Millennials —young adults ages 18 to 31 — are still living under their parents' roofs (this includes college students who come home for breaks). Not since the 1960s have so many young people resorted to couch surfing with mom and dad, a record 21.6 million young adults last year.
This is a gigantic sign that something is going horribly wrong in our economy—something that will cost everybody.
The Wages of Recession
The U.S. has seen a significant uptick of young people unable to afford to move out on their own since the start of the Great Recession in 2007, when just 32 percent lived with their parents. And if you look beyond college years to the 23-28 range, the number living with parents leapt by more than 25 percent bewteen 2007 and 2011, according to the Census Bureau. Clearly, the ongoing jobs crisis is a major cause: 63 percent of Millennials had jobs in 2012, down from 70 percent in 2007. Young people continue to face a jobs crisis even as the economy improves, as Catherine Ruetschlin and Tamara Draut of the public policy think tank Demos have found. They are facing a deficit of 4 million jobs, with African Americans and Hispanics worst hit. [...]
Trying to work and pay back student loans at the same time makes coming up with rent a daunting challenge. Student debt, which we already knew was astronomical, quadrupling from just $240 billion in 2003 to more than $1 trillion today, turns out to be even worse than we thought, according to findings from Demos. Two-thirds of seniors leave college with an average of $26,600 in student loans, and the financial burden holds them back in a number of ways. They have trouble saving, and even when they are able to stash away enough money for a mortgage, young people with debt have to pay a higher interest rate than those without it.