WASHINGTON (8/7/13)--During 2012, roughly 21.4 million or 36% of Millennials ages 18 to 34 lived with their parents. That is the highest percentage in at least four decades, says Pew Research Center's analysis of U.S. Census Bureau data.
By comparison, 18.5 million in this age group lived with the folks in 2007. The percentage has consistently climbed since then, when 32% of Millennials lived at home. In 2009, after the Great Recession, 34% lived with their parents, said the Washington, D.C.-based research center.
Of those living with parents, from one third to one half are college students. Younger Millennials between 18 and 24 are more likely to live at home than older ones ages 25-31--56% vs. 16%, respectively. Millennial men were more likely--at 40%--to live with the folks than Millennial women--at 32%--were.
The key factors, Pew found, include:
Declining employment. Last year 63% of Millennials had jobs, down from 70% for this age group in 2007. Forty-five percent of unemployed Millennials lived at home last year, compared with 29% of employed young adults.
Rising college enrollment. In March 2012, about 39% of 18- to 24-year-olds were enrolled in college, an increase from 355 in March 2007. In this age group, those enrolled in college were more likely to live at home, 66%, than those who were not in college, 50%.
Declining marriage rates. Last year, 25% of Millennials were married, down from 30% who were married in 2007. Unmarried Millennials are more likely to live with the folks than married Millennials were, 47% vs. 3%.
What does this trend mean for credit unions? It changes the way they market and the products and services they provide at any given life stage. Sticking to the old "lifestage" marketing of products may miss the mark.
Twenty years ago, a 30-something would be 10 years out of college, have a good job, be married with a couple of kids. He wouldn't have a student loan because tuition was cheaper and he worked his way through college. He would be in the market for a new car loan, a starter mortgage loan or a remodeling loan, a college savings fund for the kids, and some investments to make the most of his earnings--the American Dream.
Today's Millennial doesn't reflect those needs. Many Millennials aren't married and don't need mortgages or remodeling loans or college savings plans yet. They say they need used-car loans that don't take six years to pay off, a good refinance rate on their student loans, and because they don't make much money, they need good savings rates. And they want the convenience of mobile banking.