The U.S. Census Bureau recently documented one of the largest declines among young adults reaching major life milestones. More young people than ever before are postponing marriage, delaying parenthood, not obtaining full-time work, and failing to move out of their parents’ house. Indeed, this trend represents a dramatic break from past generations. Historically, almost 50% of 25- to 34-year-olds achieved these key milestones. Today, however, just over one in five (23 percent) young adults in this age group have completed the most recent iteration of the dream.
Interest in marriage has dropped, with fewer 25-to-34-year-olds getting married at all. The report illustrates how young adults are having less children. It exposes a troubling picture – the growing scarcity of full-time jobs for young adults. Particularly among Millennials, an increasing number of young adults are opting to live in their parents’ houses. They would rather do this than even chase down independent living situations.
Economic considerations have obviously been a major driver of these changing trends. The median age for first-time homebuyers has skyrocketed to an all-time high of 38 years. By comparison, it was in the late 20s thirty years ago during the 1980s. Increasing housing costs and high cost burdens are financially straining many young adults today. Consequently, they are postponing starting their families. The desire for more economic security has become a prerequisite met first before they will think about getting married or starting a family.
Melissa Soehono, a 29-year-old public relations executive from Jacksonville, Florida, told us why she thinks this trend is so popular. She told us that she would love to begin a family in the future, but had to come to terms with her present-day life.
“I do get a little bit of ‘FOMO’ seeing my friends around my age getting married, settling into a new home — and I’m just not in a place where that is really realistic for me.” – Mellisa Soehono
During this stage of her life, Soehono pressed down even harder on the career throttle in order to cultivate her professional focus.
“Where I am at with my life is focusing on my career because that’s really all I have right now.” – Mellisa Soehono
Douglas Boneparth, a certified financial planner and president of Bone Fide Wealth in New York, has seen that trend accelerate. An increasing share of young adults are living with their parents by choice. For today’s young adults, marriage and parenthood seem much more like objectives to strive for once they’ve achieved financial autonomy.
“The economic bar for starting a family has risen, with affordability concerns shaping the timing and sequencing of life milestones more than in prior generations.” – Douglas Boneparth
Boneparth’s take speaks to a larger movement towards the importance of financial independence before seeking out other milestones. The razor-thin margin young adults walk to find economic stability today is easy to feel.
These trends have been very much in flux. What’s less clear is how they will play in future generations and in changing the societal expectations around family and career. The stakes are high not just for the lives of their constituents, but for the economy of their city, state, and country as a whole.