Fed “Mystified” Why Millennials Still Live at Home; My Answer May Surprise You (It Isn’t Jobs, Student Debt, or Housing)

Jon Blogosphere, Economy, Fiscal Policies, Real Estate

A New York Fed research paper wonders What’s Keeping Millennials at Home? Is it Debt, Jobs, or Housing?
The paper says “it’s a mystery” why the housing recovery did not have a bigger impact on millennials living at home.
The research paper, written by Zachary Bleemer, Meta Brown, Donghoon Lee, and Wilbert van der Klaauw notes correlations to debt, jobs and housing.
Yet, “student debt only explains about 10% of the increase in parental coresidence since 2004, with another 10% being explained by house prices during the mid-2000s“.
I have the answer below, but first a few charts and notes on the charts.
Notes:
CCP is the Federal Reserve Bank of New York’s Equifax-Sourced Consumer Credit Panel CPS is the Current Population Survey, a joint effort between the Bureau of Labor Statistics and the Census Bureau

This post was published at Global Economic Analysis on November 24, 2014.