Young Adults Now Living with Parents at Record Highs
The Coronavirus pandemic has caused economic hardship and forced many young adults to move back in with family members. The share of young adults now living with their parents is the highest it has been since the Great Depression. Currently, 52% of 18 to 29-year olds reside with one of both of their parents, according to a recent Pew Research Center report. The overall number grew to 26.6 million in July, as young adults relocated due to job losses and the shutdown of college campuses. Nearly 3 million of these moves came when the Pandemic first hit in March and April. At the end of the Great Depression in 1940, 48% of young adults lived at home. Pew points out that the number was likely higher in the 1930s, but there is no data going back that far.
The share of young adults living with parents grew across the board for all major racial and ethnic groups, genders, and geographies. Growth was highest for the youngest adults aged 18 to 24, and for White young adults. Historically, White young adults have been less likely than their Asian, Black, and Hispanic cohorts to live with their parents, but that gap is narrowing. Roughly 64 million Americans (1 in 5 people) lived in a multigeneration household prior to the pandemic. This number has been steadily increasing as America continues to become more ethnically and racially diverse.
Household formation is a leading indicator of future rental and housing demand. We believe that the recent pandemic caused relocations back home, has created an unprecedented “shadow rental demand”. Eventually, the millions of young Americans now living with their parents will move out and become renters and homeowners. The housing market was already under-supplied going into the pandemic. The big question remains of how quickly the economy and jobs can re-open.
|
|
Edward M. Aloe
Founder and CEO
626-229-9057
|
|
|
2021 housing market forecast: It’s about politics, not economics
Financial protections set to expire during split congress
As we prepare to enter 2021, our country has lost more than 250,000 people and over 22 million jobs during the 2020 pandemic. Millions of others have suffered from COVID-19 complications, both health and economic related. At the same time, the housing market has shown surprising resilience, with price growth and home sales rising to new heights.
How is this possible? Quick policy action from all levels of government protected vulnerable households from slipping into foreclosure and eviction. However, many of these protections are set to expire in the new year. Without renewal, our housing market forecasts show 2021 could highlight the underlying economic damage from the pandemic.
|
|
|
|
Biden picks Janet Yellen to be next Treasury Secretary
Former head of Federal Reserve would be first woman to lead Treasury Department
The Wall Street Journal on Monday afternoon reported that Biden tapped Yellen, an economist who was the first woman to lead the Federal Reserve, to lead the economic recovery stemming from the coronavirus pandemic.
Last week, reports surfaced that Biden planned to choose a candidate that would appeal to all camps within the Democratic party.
|
|
|
|
Southeastern housing markets have homes “singing out the door”
Nashville, Little Rock and Louisville are red hot
Vacation areas and luxury housing markets aren’t the only ones benefitting from a wave of pandemic buyers: southeastern locales are also filling up.
Metro areas with the biggest increases in net inflow in the third quarter included Little Rock, Arkansas; Louisville, Kentucky; and Knoxville, Tennessee, according to Redfin.
Homes are “singing out the door about as fast as they come on the market,” in Little Rock, Arkansas, according to Melissa Bond, a Realtor at United Real Estate – Central Arkansas.
According to the Little Rock Realtors Association in Arkansas, listing count is down 40.5% in October year over year, and there is currently only 2.1 months’ worth of inventory, down 53.5% year over year. In October, pending sale count was up 96.9% from last year.
|
|
|
|
About CALCAP
California Capital Real Estate Advisors, Inc., and its affiliate entities (CALCAP Asset Management I & II, CALCAP Properties, CALCAP Lending, and CALCAP Senior Healthcare I, collectively known as "CALCAP"), is a California based investment company founded and 2008 and headquartered in Pasadena, California. The Company sponsors alternative real estate investment opportunities focused on demographically driven housing. CALCAP has been able to consistently provide both individual and institutional investors with outstanding returns over the last 10 years. The Company's core strategies look to actively create alpha for investors while managing risk. CALCAP currently has over $350mm in Assets Under Management. To learn more visit www.calcapadvisors.com.
Social Mission
CALCAP has created the CALCAP CARES program to encourage employees to find a way to give back to the neighborhoods where we invest. CALCAP has created "GiveTime4Autism" as its initial program which will allow employees the ability to donate unused vacation and sick days for a very worthy cause.
|
|
LOS ANGELES
The Sanborn House
65 N. Catalina Avenue
Pasadena, CA 91106
SAN DIEGO
12626 High Bluff Drive, Suite 360
San Diego, CA 92130
PHOENIX
740 N. 52nd Street
Phoenix, AZ 85008
SANTA BARBARA
1309 State Street, Suite A
Santa Barbara, CA 93101
ORANGE COUNTY
92 Argonaut, Suite 205
Aliso Viejo, CA 92656
|
|
Edward M. Aloe, Founder & CEO
(626) 229-9057
Patrick A. Wakeman, Principal
(858) 764-4890
Drew Buccino, Principal and COO
(602) 419-3381
Greg Blix
Director of Investor Relations
(805) 896-8500
Len Israel
CEO, CALCAP Lending, LLC
949-439-1044
|
|
Mark A. Mozilo, Principal
(626) 229-9056
|
|
|
|
|
|
|