Since 2006, the 25- to 34-year-old age group showed almost no income growth, while the median income for older age groups grew by almost 11%. Waning wages for millennials has led to a significant drop in their household headship.
NAHB analysts have determined this shift away from financial independence and back into mom’s basement translates into approximately 2 million would-be home owners between the ages of 25 and 34 who are missing from the current housing market.
To make matters worse, the income gap for people in this age group has widened between the home owners and the nearly 9 million who live in their parents’ homes. This suggests the income requirements for young adults to buy (or even rent) a crash pad of their own have increased in recent years, further delaying household formations and significantly altering housing demand.