From Cynthia Scott of OMC Financial Services:
The job market is forcing adult children to move back with their parents. Is this hurting the economic recover?
**According to the Pew Research Group 61 percent of adult children between the ages of 25 and 34 have moved back home because of economic conditions and multigenerational living households is the highest since the 1950’s.
**Some of the economic consequences of this age group moving into their parents home are:
>Lower apartment rentals
>Lower purchases of new automobiles
>No first home purchase
>Furniture purchases for new home or apartments are deferred
>Marriage is deferred
>New births are lowered affecting the markets such as baby furniture, diapers, formula, toys, etc.
>The parents incur an additional financial burden which may affect their retirement plans, including additional savings
**The good news is that this phenomenon has occurred in the past and is usually cyclical but it does have an economic impact.
