Millennials who are still living with their parents may finally have the resources to move out this year, according to economists who are basing forecasts on whether President Donald Trump’s job-growth promises work out.
Young people have been living at home at an increasing rate over the last few years, according to the Census Bureau. Reasons for millennials dwelling with their parents include people getting married later and slow wage growth over the economic recovery in the U.S., Business Insider reported.
But with Trump proposing a pro-business stimulus, economists suggest that young people stand to benefit from possible windfalls if his promises pan out.
“With wage growth finally set to accelerate, thanks to the fiscal stimulus, we think a larger number of youngsters will have the resources to move out of the parental home this year,” Matthew Pointon, a property economist at Capital Economics, told Business Insider.
Pointon estimated that young adults will start moving out following a “transition phase.”
“Once a new equilibrium has been found, this ‘tempo’ effect will dissipate and household formation will return to its long-run level,” he said. “If Trump follows through on his promise to slash regulations, credit conditions are also likely to ease. Taken together, that will enable more Americans to leave the parental home, and 2017 should see the share living with their parents edge down.”