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When will they ever move out?

Posted by Scott Van Voorhis August 24, 2012 07:47 AM

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That's the question more than a few exasperated boomer parents are asking right now.

Slammed by the Great Recession, 20-somethings returned home in droves.

But it looks like what was an emergency reaction is now turning into a permanent lifestyle shift.

While the economy has slowly been picking up, junior appears quite comfortable camping out with mom and dad, stashing away money and getting free meals.

The number of young adults living with their parents increased by 2 million after the recession, Housing Wire reports, citing "economic commentary" from a Cleveland Federal Reserve official.

So in addition to a stinky economy and prolonged adolescence, what else is to blame?

Well Tim Dunne, the Cleveland Fed researcher, points the finger at stricter underwriting standards by banks when it comes to doling out mortgages.

Here's an excerpt from the Housing Wire piece.

Tighter lending standards are further complicating the housing sector's ability to recover by reducing access to mortgage credit, the commentary (by Dunne) said.

"This may have increased the incentive of individuals to delay household formation in order to save for a down payment, build credit histories, or repair tarnished credit scores," said Tim Dunne, a researcher at the Federal Reserve Bank of Cleveland, who wrote the commentary.

Not sure I buy that one. Can't buy a house? Get an apartment!

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Scott Van Voorhis is a freelance writer who specializes in real estate and business issues.

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