According to a new study, California and other liberal states have the greatest percentage of young adults living with their parents.
New Jersey topped the list, followed by California, New York, Maryland, and then Connecticut. Comet Financial Intelligence, a financial services website, used census data to rank each of the 50 states.
While some solidly conservative states like Texas and Utah made the top ten, the top three states with the lowest percentage of young adults living at home were North Dakota, South Dakota, and Wyoming — all states that Trump won in 2016.
So why are liberal states topping the list?
The cost of living in California, New York, and New Jersey is hard to handle. In New York City, it is nearly 69 percent higher than the national average, and income tax rates alone range from 7 to 12 percent. The average monthly rent for a California studio is $1,680, which is $618 above the national average. Meanwhile, the per capita income in California is only $1,372 more than the rest of the United States. Not to be outdone, New Jersey has the highest property tax rates in the country.
Most of the liberal states leading the list have densely packed urban centers that are notoriously expensive. Unfortunately, these urban areas are where most of the high-paying jobs are.
While the cost of living in these places is enough to make any millennial want to move back in with their parents indefinitely, this doesn’t even account for student debt. Contrary to what many students are told during high school, a college degree doesn’t equate to immediate success upon graduation. Interestingly enough, three of the ten most educated states in the country — Maryland, Connecticut, and New Jersey — made Comet’s top 10 list.
Millennials bear most of the $1.2 trillion that Americans owe in student loans, and a large number of them aren’t earning enough to make their payments and pay rent (let alone a mortgage). More than a third of millennials owe more than $30,000, and that’s on top of any other debt they have, such as credit card debt or an auto loan.
Some states have reported a millennial exodus from expensive urban areas to more affordable areas of the Midwest to launch their careers, but as millennials grow more comfortable living with their parents, and the stigma continues to fade, they are less likely to make this move. This means other major life milestones, like getting married, having kids, and buying a first home will continue to get pushed back, affecting the economy for years to come.
