A new data analysis show that millennials (ages 18-34 for the purposes of this discussion) are facing strong headwinds in our region and are are struggling to find economic footing, and more so than the national average.
One might assume that there is an inverse relationship between educational attainment and the choice to live at home.
But the reality is more complicated.
According to Abodo, a real estate service, the percentage of Millennials living at home who only have a high school degree — 32.4 percent — is lower than the 38.9 percent of Millennials living at home who have an associate degree, have attended some college, or are currently in college. Both exceed the percentage of all Millennials — regardless of home situation — with similar educational credentials.
When it comes to those with a high school degree or GED, the difference is almost 6 percent.
One of the major issues is the lack of economic opportunity. The average millennial in Metro Detroit is making $1,952 a month, or just $23,424 a year. They’re also facing a 12.1 percent unemployment rate, almost double the region’s current 6.1 percent.
Millennials that live at home are making even less, or $1,084 a month in the Detroit region. At those wages, housing costs that average $871 per month is basically unattainable.
Nationally, the percentage of millennials who are living with their parents is 34.1 percent. 18- to 34-year-olds are more likely to be living with their parents than to be in any other living situation, including cohabitation with a spouse or significant other, or living alone or with roommates, for the first time in more than 130 years.
Often, it’s a combination of issues, such as high rent, lack of education, unemployment, and low pay that drive this trend according to Abodo.
Millennials are not only earning less than their parents did as young adults, but the majority of Millennials who pursue post-secondary education also graduate saddled with an average student loan debt hovering around $30,000.
Additionally, wages aren’t increasing at the same rate as rents. In all of the cities we examined — MSAs with more than 1 million residents — Millennials living at home earned a median monthly income of $1,121 — nearly $1,000 less than the median monthly income of all Millennials, which was $2,023.
We’ve had guest bloggers on Daily Detroit who have talked about how the lack of jobs for young people have pushed them out of an area they love. Have a read. Do you have a suggestion for a solution? Leave it in the comments.