Via Calculated Risk, the Atlantic cautions people not to freak out about 20-somethings living at home:
More than ever, young people are living in their parents' basements.
You've surely heard that one before. The Washington Post, the New York Times, the New Republic, Salon, and others have repeated it over and over in the last few years. More than 15.3 million twentysomethings—and half of young people under 25—live "in their parents’ home," according to official Census statistics.
There's just one problem with those official statistics. They're criminally misleading. When you read the full Census reports, you often come upon this crucial sentence:
It is important to note that the Current Population Survey counts students living in dormitories as living in their parents' home.
Calculated Risk explains the economics:
This is an important point since there is a long term trend for higher school enrollment (so we shouldn't "freak out" about the reported increase in young people living at home).
And higher school enrollment generally means lower labor force participation (as I've pointed out before, the decline in the overall labor force participation rate is due to several factors, but two of the most important are aging of the baby boomers and more younger people staying in school).
Mission accomplished. I will no longer worry about Milennials living with their parents.