While it’s encouraging that more millennials are moving out of Mom and Dad’s house now, a new study is showing that a significant amount of college graduates are still moving in with their parents.
The Young Millennials and Money survey by TD Ameritrade shows that almost half of post-college millennials, 48 percent, moved back in with their parents after college. 47 percent of post-college millennials did not or do not expect to move back in with their parents after graduation.
Earlier this month, a promising report from Fannie Mae was released revealing that there’s been a steady, but gradual reduction in millennials living with their parents. For young adults aged 24-25 in 2013 to 26-27 in 2015, the percentage of millennials living with their parents fell 7.6 percent. There was only a reduction of 5.4 percent of the same cohort of young adults between 2010 and 2012.
Despite these attitudes about moving back in with their parents after graduating from college, young millennials, on average, are optimistic that they’ll be financially independent by the time they are 23 years old. For teenagers, they expect to be financially independent by the time they hit age 22.
The lack of high paying entry jobs and student loan reform have been the biggest burden on millennials. While President Trump has focused a lot of his administration’s attention to creating jobs, especially for young people, the White House has put the issue of student debt on the backburner until healthcare and tax reform are successfully passed.
If Trump’s economic policy continues to bear fruit, maybe the majority of the next wave of college graduates will be relieved to find that they don’t have to move back in with Mom & Dad as they enter the real world.