Kids aren’t leaving home after college, and that’s hurting the economy

Kids used to leave home when they went off to college, got a job upon graduation, then didn’t come back again except for occasional holiday visits.

Now, increasingly, when they come home, they stay for good. That’s certainly true for the many who haven’t been able to find work. They just can’t afford their own place.

But these days, even those with jobs are going back to live with their parents. And, according to this report in The New York Times, that’s having a negative impact on the overall economy. Simply stated, they’re not buying the goods and services that people forming new households do. So everyone’s affected.

As the story notes, “Even before the recession began, young people were leaving home later; now the bad economy has tethered them there indefinitely. Last year, just 950,000 new households were created. By comparison, about 1.3 million new households were formed in 2007, the year the recession began …”

Even before the recession began, young people were leaving home later; now the bad economy has tethered them there indefinitely. Last year, just 950,000 new households were created. By comparison, about 1.3 million new households were formed in 2007, the year the recession began,

4 comments Add your comment

pay up!

November 17th, 2011
7:33 pm

why not live at home instead of paying obscene prices for rent at dumpy apartments, utilities, cable, etc. apt rates have to come way down in this depression.

Cameron

November 19th, 2011
2:54 pm

Ok, now the media is blaming the economy on KIDS, instead of on the PResident’s inaction and outright sabatoge of the business climate, not to mention all the regulations Democrats have put forth since taking control of congress.

This is shameless. The media will blame anyone but Obama!

britd

November 19th, 2011
5:07 pm

President Obama is not to blame for this issue and neither are the kids. The origin of this issue lies in the administartion of the presidents before President Obama. Funds are just at a limit right now and our Congress and fellow citizens,who possess way more power than the President,need to do more to build our economy back up.

justjanny

November 22nd, 2011
3:06 pm

It’s a lot easier to blame the President than to do our individual part to improve the economy. Banks showing profits, etc. yet people are still out of work. How about if every small business hires just one employee? Yeah, yeah, yeah…it’s all President Obama’s fault. Let’s flash back to 2004 forward, OK?