Working Poor – 40% of 18-34 Year Olds in California Live with Mom/Dad
Working Poor – 40% of 18-34 Year Olds in California Live with Mom/Dad by Rory, The Daily Coin
Before the birth of The Daily Coin I was working for a large retail corporation. Typical, lower Management position with about dozen people under my watchful eye. Great group of kids, primarily in the 18-34 age bracket – Millennials – and they all shared a common trait; no future. I don’t mean to sound harsh, but these young people knew something was very wrong. They couldn’t identify it, but they all had a sense that unless that made a stand with the company we worked for their future would be far less than what their parents enjoyed.
Most of these young adults lived with several roommates in order to afford living away from their parents house. A few lived in subsidized housing and others worked multiple jobs in order to make ends meet. This was more than three years ago. During the past three years we have seen our economy go from bad to worse. I have been saying, for some time, we are in an economic depression and I believe this started sometime around 2011. The true numbers, as reported by John Williams at Shadow Stats, supports this idea. If you compare the current true unemployment and true rate of inflation you will see the U.S. economy is reminiscent of the 1930’s. Any little thing could tip the scale and we could find ourselves in far worse condition than our current situation.
Dr. housing Bubble is reporting on the state of California and shows some 40% of Millennials, aged 18-34, are currently living with the parents. How can the housing market be anything but a bubble when the “up-and-comers” are sitting idle? If this group of young adults are not entering the housing market it makes it much harder for people to sell their “starter home” and move to their “forever home”.
A record number of young people are living at home with mom and dad in California even in the midst of a very low unemployment rate and record in the stock market. Millennials in particular are carrying large levels of debt and many are still struggling to get out into a rental, let alone purchasing a home. There is a housing apocalypse for young Americans and in California, many Millennials are simply waiting until their baby boomer parents kick the bucket so they can own a piece of the California Dream. But Taco Tuesday baby boomers are not going away and many are angry that their offspring are unable to buy a home like they did when housing wasn’t consumed by house horny buyers and prices were actually affordable. The numbers are startling because when we brought attention to the issue a few years ago the number was at 2.3 million young adults living at home. Today it is now up to 3.6 million – if we combined these people it would be the third largest city in the U.S.
Young and living at home
There was this “fake news” narrative that many young Americans would be the second wind that would keep the housing market going strong. That never materialized. What did happen is that you had investors, foreign money, and wealthier older households buying the slim inventory available in the market. In California where rent prices are high and housing prices on crap shacks are insane, many are simply living at home.
And yes, this time it is different when it comes to young people living at home:
Source: Cal Matters, Census.gov
Back in 1980 20 percent of young Californians lived at home. It was actually lower than the national number of 22 percent at that time. Even in 2005 the state and national figures were similar. But fast forward to today and you have nearly 40 percent of young Californians living at home versus 34 percent nationwide. Make no mistake though, this is a national trend.
My guess is this same scenario applies to most, if not all, major metropolis’ around the country. Which begs the question, who exactly is buying all the houses that are currently changing hands? The housing market in middle Tennessee is on fire and the lack of inventory is driving prices to the moon. The housing inflation in and around Nashville is running at approximately 30+% annually! If not a lot higher!
We know the Canadian housing bubble is being fueled by, primarily, Chinese investors looking to park their yuan outside the country. Canada has just put a “tax” on foreign money buying homes. This has cooled the market a little, but if you are looking to move investment money what is another 15% or so to protect your wealth? Would you rather lose 15% today or a lot more tomorrow?
With good paying jobs gone forever and most manufacturing, along with a great many other industries, moving to AI, robotics and automation this current trend of young adults being hosed is going to continue. You can not support a family as a waiter or bartender. You can support a family or purchase a home as a retail clerk. You can not support a family or purchase a home driving for Uber. Oh that’s right Uber is working on driverless cars right now, so, good luck with that creating any income within the next ten years. It may be a good idea for people to begin following their passion and attempting to create an income outside traditional channels. The traditional channels are drying up or closing down and in todays world most traditional channels will not support any upward mobility.