College graduates who bounced from college graduation to their childhood bedrooms are now on the move. Many rebounded and are now part of a growing 2013 market trend.
Demographic Size
Two million more 18–34-year-olds resided with parents last year than in the prior four years, reports Timothy Dunne, an economist with the Federal Reserve Bank of Cleveland. They are now emerging as the next wave of upwardly and outwardly mobile employees, renters and buyers.
Will Move for Employment
Adults 25-29 are spreading their wings and migrating to greener employment pastures as the economy recovers.
According to Brookings Institution demographer William Frey, in 2012, “the increase in the rate of people 25-to-29 moving was the highest in 13 years.” The economic downturn reduced cross-state migration rates to post-World War II levels. The tide has turned. Adults 25-29 are spreading their wings and migrating to greener employment pastures as the economy recovers.
In 2012, for adults aged 25-34 the jobless rate fell from 9 percent to 7.9 percent. Many pursued career opportunities in distant cities and are in the market for housing.
Renters or Buyers?
Most relocate to urban centers and are initially drawn to the flexibility of renting. Escalating rents, the weak supply of rental options and low interest rates, make buying a competitive option.
Conclusion
Builders, real estate professionals, asset management companies, and rental property investors who provide viable housing options and value-added resources to this emerging group should experience growth in 2013 and beyond.
Sources:
- Los Angeles Times. Young Adults Are Leaving the Nest. Don Lee. December 9, 2012.
- Timothy Dunne, Economist with the Federal Reserve Bank of Cleveland.
- Brookings Institution demographer, William Frey.