Women were more likely to move out than men were, and Whites were more likely to move out than Blacks or Latinos. Table 1 shows that the likelihood of moving out before age 27 was correlated with several individual characteristics. The median age at the time of moving out was about 19 years. 9 Moving outīy age 27, 90 percent of young adults in the NLSY97 had moved out of their parents’ homes at least once for a period of 3 months or longer. We weight all responses with the weights for the year in which a respondent turned age 27. In addition, the analysis examines the household composition of all 27-year-olds to determine whether these individuals were still living with their parents.

The analysis captures a respondent’s age on the date of the first move out and, if applicable, the first move back home. 8 Moves back of shorter durations are not reflected in the data. In addition, the survey has asked respondents to indicate whether they have ever moved back home for a period of 3 months or longer.

7 With this information, we can ascertain whether an individual moved out of his or her parental household, even if we do not see the move in the annual snapshot for that household. 6 Since 2003, the NLSY97 has asked respondents to identify the date on which they first started living independently. The NLSY97 also collects detailed information on the household in which the individual resided at the time of interview, including information about income, dwelling type, and relationships among household members. Education data include schooling history, performance on standardized tests, course of study, timing and types of degrees, and detailed accounts of progression through postsecondary schooling. Employment data include job start and stop dates, occupation, industry, hours worked, earnings, job search activities, and benefits. It collects extensive information on youths' labor market behavior and educational experiences over time. The NLSY97 documents the transition from school to work and into adulthood.

It also allows us to identify other characteristics of the individuals who made these transitions. The longitudinal nature of the survey allows us to determine the percentage of millennials who established household independence (i.e., moved out) or returned home. Between 19, these individuals were interviewed on an annual basis. The NLSY97 consists of a nationally representative sample of approximately 9,000 youths who were 12 to 16 years old on December 31, 1996. Young adults with relatively higher wages and better employment opportunities established and maintained household independence at higher rates. Leaving and returning home were related to labor market attachment and wages, as well as other individual and family characteristics. By age 27, close to 80 percent of millennials in this cohort were not in their parents’ homes. It finds that while 90 percent of these individuals left their parental homes, more than half of them returned at some point after moving out. 5 Using the National Longitudinal Survey of Youth 1997 (NLSY97), this article explores the household formation experiences of young millennials (i.e., people born from 1980 to 1984) before age 27. Whether individuals leave or return home may affect aggregate housing demand, fertility patterns, labor force mobility, and demand for public services. 3 Conversely, poor employment conditions may create incentives for moving back as a way to hedge against labor market risk. 2 Likewise, a higher earnings potential may encourage a young adult to leave home. Living in the parental home may mean that parents subsidize housing costs however, as children age, they may be less willing to accept this arrangement. For example, wealthier parents may transfer money to their children in forms that encourage either staying at home or moving out, depending on prevailing social norms and personal preferences. The decision to move out of the parental household may be affected not only by macroeconomic conditions but also by social factors and individual economic variables. The share of men and women ages 18 to 34 living in their parents’ homes was larger in 2012 than in the early 2000s. During the 2007–2009 recession, fewer young adults were establishing their own households and more of them were moving back with parents after initially moving out. Establishing an independent household has long been considered an important milestone in the transition to adulthood.

Move date up or back