Young people in Amerizuela are in shambles this month pic.twitter.com/DJmcBBTyLK
— 🅰🅻🅴🆂🆂🅸🅾 (@AlessioUrban) October 1, 2023
About 50% of Americans aged 18 to 29 are living with their parents
Nearly half of all young adults in the US ages 18 to 29 live with their parents, and this living arrangement is boosting the profits of luxury goods companies, according to Morgan Stanley.
The number of people moving back in with at least one parent spiked in 2020 at the height of the covid-19 pandemic to 49.5%, according to census data. It’s since edged down to 48% last year, but the rate is expected by the bank to remain there for 2022, even as people return to a hybrid work set up.
When young adults free up their budgets from daily necessities, they have more income that can be spent on discretionary items like travel, entertainment, and luxury goods.
“We think the structural change in demographics might have been overlooked,” Morgan Stanley’s Edouard Aubin and a team of analysts wrote in a note on Dec. 9. “One of the key demographic trends in the US (and the broader Western market) has been the rising number of young adults living with their parents, driven by financial concerns (i.e. rental costs) as well as other sociological factors (e.g. higher penetration of higher education and increasingly delayed age for marriage).
Recession is closing in
Buckle up. pic.twitter.com/6AiEqozrhH
— Game of Trades (@GameofTrades_) October 1, 2023