Young adults are being hit hard by a weakening job market and a worsening housing crisis. The unemployment rate for people aged 16 to 24 has shot up beyond 10%, far outpacing job losses in the broader workforce. This economic slowdown adds to the already steep barriers young people face when trying to live independently today.
Even before the recent rise in unemployment, many young adults struggled to afford housing or form their own households. Of the roughly 30 million Americans aged 18 to 24, fewer than one in five head their own household. Most still live with parents or other relatives, and a smaller share live in college housing or with unrelated roommates. Education and income play major roles in these trends, with only a quarter of young householders holding a bachelor’s degree, and nearly two-thirds earning low incomes relative to local averages.
Given those limited resources, it’s no surprise that most young adults rent, and are prone to move often. About 82% of young adult households rent their homes, and more than half have lived in their current residence for less than a year. Even renting has become increasingly unaffordable. More than half of young adult households spend over 30% of their income on housing costs, and these financial burdens are especially severe for renters. Nearly 60% of young renters are cost burdened, a figure that jumps to 90% among those earning what would be considered low incomes.
Racial disparities make the picture even starker. Roughly two-thirds of Black and Asian young renters, and nearly 60% of Hispanic renters, spend too much of their income on housing (compared with 55% of white renters). As for students, they often face unique challenges, having to rely on loans, grants, or family help to cover rent while earning little to no income. Those without family support are left at a major disadvantage, deepening inequality across income and race.
Despite these struggles, young adults are far less likely than other low-income renters to receive housing assistance. Only about 9% of young renters earning under $30,000 per year receive any public housing help, compared with nearly a quarter of lower-income renters overall. Sadly, long waitlists, eligibility hurdles, and frequent moves often keep young adults from getting the support they need.
With job prospects dimming and housing costs at historic highs, young adults are caught in what often feels like an absolute stalemate between stagnant wages and rising rents. Without stronger investment in affordable housing programs and targeted support, an entire generation risks being locked out of stable, independent living.
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The post Young Adults Face Growing Struggles in Jobs and Housing first appeared on The MortgagePoint.
