It's getting harder for recent grads to move out of their parents' basement, according to recent data from Zillow Group Inc (Z) .
Looser lending standers and a surplus of inventory made it easier for recent grads to move out in the mid-aughts. But the biggest factor may be the job market that many young people graduated into after 2008.
"In the mid-2000s, lending standards and an abundant supply of homes made it easier for recent grads to move out and form their own households instead of living with their parents," said Aaron Terrazas, Zillow's senior economist. "Those market conditions have changed drastically over the past decade as we went through the housing bust. Adding to that, as many millennials who recently graduated into the Great Recession can attest, underemployment or more precarious jobs make it much harder to save up enough to move out.
According to Zillow data, the share of college grads in their 20s who live with their parents increased to 28% in 2016 from 19% in 2005.
Zillow's data also show that the number of recent grads living with a romantic partner was on the decline as the number living with their parents increased. The data also show that the problem was more pronounced in areas that tend to have boom-or-bust economies.
The share of college grads living with their parents in New York was again one of the highest in the country at 42%, followed by 38% doing so in Los Angeles and Philadelphia and 34% living with their parents in Chicago.
Riverside, California, had the highest percentage with 51% of recent college grads living at home.
Austin, Texas, had the lowest percentage with just 13% of recent grads living with mom and dad, followed by Denver and Columbus, Ohio, with 15%, Seattle with 16%, and Kansas City with 19%.