More millennials are moving back in with their parents in the San Francisco and San Jose, California, areas, according to a report by The Mercury News. More than a fifth of millennials (ages 23-37) lived with their parents in 2017, according to information from Zillow and U.S. Census Data.
The report states that the number of millennials returning to live at home has increased 65% in San Francisco and 56% in San Jose since 2005.
“Millennials are facing a double-whammy,” said Matt Regan, a housing and public policy expert for the Bay Area Council. “They are behind a couple of eight balls. They are living through one of the biggest housing crises in history while saddled with the biggest student loans in history. They are often at the bottom of the income ladder and they are getting forced out of the region or moving back to their old rooms at home.”
Affordability remains in issue in the Golden State, as a report last month from Trulia found that California had four of the five priciest metros in the nation: San Francisco, San Jose, Los Angeles and San Diego.
The report stated that San Diego, which has a median home value of $569,700 and median income of $75,110, has only 8% of its zip codes with 100% of homes considered affordable.
While millennials struggle in California, the rest of the nation is reporting a sense of urgency, and priority from millennials, to get into the housing market.
A survey from SunTrust last month stated that among more than 2,000 U.S. adults, nearly half of millennials (48%) who have been married say they, or their spouse, owned a home prior to marriage, compared to 35% of baby boomers (ages 55-73).
"People are choosing from many different paths and reaching common life milestones at a wider age span than before, changing when they decide to purchase a home," said Sherry Graziano, Mortgage Transformation Officer at SunTrust.
SunTrust also found an increasing number of couples are entering marriage with both individuals owning a home. The survey stated that 25% of unmarried women and 21% of unmarried men said they would prefer to sell both residences and buy a new one after marriage.