Decades ago, the American Dream meant owning your own home or having the opportunity to explore the world on your own as a young adult through solo apartment living. A century ago, homeownership plus small business ownership was the norm.
Now, the average age at which more than half of California residents are homeowners is 49…and rising.
Co-residency with parents and other relatives is rapidly becoming commonplace.
High home prices and rents are the main catalyst of this trend, says Desen Lin, assistant professor of finance at Cal State Fullerton’s College of Business and Economics.
Lin co-authored a paper with faculty from the University of Washington and University of Pennsylvania Wharton School entitled “Why do young adults coreside with their parents?” The article appears as the leading article in the 2024 January issue of the journal Real Estate Economics.
The study looks at the trend in which one of every two adults aged 18-29 currently lives with their parents, up from one in four in 1960.
And understanding that trend helps the public better understand the trends impacting their families and helps policymakers and academics look at solutions for the affordable housing crisis.
Read this complete article on CSUF Business News.