Young Adult Households That Did Not Form

New NAHB Economics research shows that two million households headed by 25 – 34 year olds are missing from the current housing market but could have been active players if the headship rates remained at the 2000 levels. Instead, a rising number of young adults choose to stay with their parents or parents-in-law. As of 2014, more than 20 percent of young adults ages 25 to 34, or 8.8 million, live in homes of their parents or parents-in-law.

This represents a sharp increase since 2000 when less than 12 percent, or 4.6 million, lived with parents. Even going back to 1990, when the youngest baby boomers filled the 25-34 age bracket, those living with parents accounted for 12.2 percent, or 5.3 million.