I’ve blogged before about how the Great Recession and resulting high unemployment rates drove a significant number of young adults back into their childhood homes — or relying on Mom and Dad for financial support at least. It affected millions of young adults.
The economy and job prospects have been steadily improving since those dark days – even if the improvement hasn’t been as rapid as people would like to see …
But here’s an interesting finding: Those new jobs and the improving economy haven’t resulted in the kids moving back out of the house.
In fact, two studies conducted by the Pew Research Center in 2016 have determined that “living with parents” is now the single most common living arrangement for America’s 18-34 year olds.
That is correct: Instead of living with a spouse, a partner, a roommate or on his or her own, the largest single segment of millennials lives full-time with parents. The phenomenon is most prevalent in Connecticut, New Jersey and New York, where it’s no coincidence that the cost of living is much higher than the national average.
For marketers, this means that the once-coveted 18-34 year-old cohort is today made up of many people who are consuming other people’s resources (e.g., the resources of their parents) rather than making all of their own purchase decisions and spending their own money.
Furthermore, Pew Research has determined that living with parents isn’t merely about employment (or the lack thereof). Over the past eight years, adults age 18-34 have continued to move back home in greater numbers — even as more of them have been able to find jobs.
It’s easy to figure that trends of this kind are transitory. But Pew cautions that the trends may well be more fundamental than the implications of an economic recession. Instead, there are broader cultural dynamics at play – as well as the long-term challenges of economic independence for this generation of people.
The implications for marketers are intriguing, too. For some, it will mean placing more emphasis on marketing initiatives aimed at parents, who are the now ones making purchase decisions within a larger multi-generational household — often one that stretches over three generations rather than just two.
And consider these dynamics as well: How do young adults and their parents work through multi-generational purchase decisions? What are the most effective ways to target and reach multiple generations living under one roof who are making coordinated purchase decisions? Maybe the old ideas of targeting each audience separately no longer make as much sense as before.
One thing’s for sure – it’s risky for marketers to wait for a return to normal … because that “normal” likely isn’t coming back. Better to come up with new tactics and new messaging to reach and influence buyers in the new multi-generational environment.