Factz

Nearly Half of America’s Young Adults are Living with Their Parents – and the Luxury Market Benefits

Nearly half of young adults in the US (aged 18 to 29) live with their parents now.

And as a result, they’re spending more money on luxury items, according to new data from Morgan Stanley.

During the pandemic, the number of people moving back in with at least one parent hit a high of 49.5% in 2020.

During 2021, the number ticked down to 48%. It is expected to hold around that number through the end of 2022. And the landscape is somewhat similar among those 26 to 41. About 25% of those live in a parents’ home, and around 55% of those who live with their parents moved home within the past year.

And now that those 48% of young people aren’t spending on day-to-day necessities like sky-high rent, they have more money for discretionary spending like travel, entertainment and luxury goods.

Second-hand fashion platforms and buy-now-pay-later financing is also adding to a boom in the luxury goods market. Bain & Co. and Altagamma forecast that the global luxury goods market will grow 21% this year to 1.4 trillion euros – astounding growth considering that so many economies worldwide are slowing down.