Federal Reserve research also indicates that debt is an important determinant of whether a young person lives with their parents, even after controlling for labor and housing market conditions. 24 That analysis also indicates that credit delinquency and lower credit scores increase the propensity for adult children to move home as well as the length of time that young people live with their parents.
However, it is possible that, even after improving economic prospects help young people overcome these impediments and boost household formation rates, homeownership rates among the Great Recession generation could lag. Young people’s attitudes toward homebuying may have changed as a result of witnessing their parents’ experiences during the housing crisis.