Generation Z is defined as the generation following the millennials. They’re the ones who are currently between the ages of 10 and 25. And thanks to Biden’s economy, there’s an alarming trend. They’re all failing to launch.
The “failure to launch” concept is when adult children fail to move out of their parents, launching into adulthood where they live on their own – or at least with roommates.
Some children aren’t going off to college because there’s too much of an expense. They’ve learned from the generations before them who are still working to pay off student loan debt. And due to the rising costs of rent, they simply can’t afford to go out on their own.
As a result, kids who are in their 20s are living at home, allowing their parents to continue to pay for all or most of the housing and groceries. What’s worse is that there’s no end in sight.
A survey conducted by Credit Karma showed that approximately a third of Generation Z is living at home or with relatives. Many weathered the pandemic turmoil and have yet to figure out how to gain any kind of real ground. The result? They don’t see living at home as a temporary solution.
The long-term housing solution is creating a multi-generational housing situation. Families are living together not out of love but out of necessity.
Those who have launched are struggling. Many who say that they have left the nest have found that they’re spending half of what they make on either mortgage or rent payments.
Moving out is expensive. Rental properties require a first and last month’s rent and often a security deposit, too. That’s not even factoring in that rent may have increased by 30% or more over the past two years.
There’s also the cost of boxes, a truck rental, and all of the utilities that are necessary to live comfortably.
The average parent doesn’t want to watch their children suffer. So, they have no choice but to let the children continue living in their childhood bedrooms. Gone are the days when that bedroom can be turned into a home office or gym. Some children will work and contribute toward the household expenses, and some won’t.
The goal, of course, is for the adult children to work and save so that they can move out. But why would they when everything is so expensive?
As Business Insider reported, “While millennials found themselves kickstarted into growing up during the pandemic — with some leaving the cities for suburbs, others making a foray into home ownership, and still others becoming nesters in their own homes — a good chunk of Gen Z was sent back to their parents’ houses.”
The biggest problem right now is that inflation isn’t doing anyone any favors. Not only is it hard to find a job in today’s labor market but the inflated costs make it hard to afford anything. They’re spending more on every aspect of life.
There’s only one good thing that is coming out of this situation. The Washington Post reported that many new households are being created out of the financial crisis – millennials are living with Generation Z roommates so that they can both afford to live without having to crawl back to their parents. It’s creating new connections and ensuring that the work gets done around the house.
Of course, everyone would rather live on their own. This is Biden’s America. With every executive order that he signs and every gaffe that he makes, it’s harder and harder for today’s youth to launch when the time comes.