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Starting to Launch: Millennials Leaving the Nest
Tuesday, May 2, 2017 6:35 AM

Given the size of the Millennial generation and its impact on housing, the living arrangements of young adults are often studied. Many analyses use a traditional approach that compares the same age group containing different people at different points in time. In many cases, the results show that Millennials are struggling to leave their parents' homes and establish their own households.

However, in a new edition of Housing Insights, Fannie Mae's Economic & Strategic Research (ESR) group presents an alternative perspective using "cohort analysis." Here, ESR monitors the change in the proportion of young adults who reside with their parents by following the same group of young people as they grow older and pass from one age group to the next.

Contrary to what other studies have found, ESR's cohort analysis shows the pace at which young adults are leaving Mom and Dad's house has actually accelerated substantially -- which bodes well for housing demand and is likely to affect several segments of the housing market.

Read the latest edition of Housing Insights and hear from the author, Patrick Simmons. Visit the Economic & Strategic Research site at to find other timely market data and analyses.