A growing number of young people across the European Union are finding themselves unable to move out of their parents' homes due to rising housing costs and financial strain, painting a concerning picture of affordability challenges and potential social implications.
Eurostat Data Reveals a Persistent Trend
Eurostat data highlights a significant upward trend in the proportion of employed young adults cohabiting with their parents. Between 2017 and 2022, the share of 25-to-34-year-olds with a job who live with their parents increased from 24% to 27% across the EU. This trend is evident in both full-time and part-time employment categories.
Ireland Sees Sharpest Increase
Ireland has witnessed the steepest rise in this category, with a staggering 13% increase over the five-year period. This surge coincides with a doubling of rental prices in the country over the past decade. As a result, Ireland now has the highest proportion of young people in this situation, with 40% currently living with their parents.
Other Notable Increases
Other EU countries that have experienced notable increases include Portugal (from 41% to 52%), Spain (from 35% to 42%), France (from 10% to 12%), Italy (from 41% to 48%), and Croatia (from 58% to 65%).
Underlying Factors: Housing Costs, Cost of Living, and Stagnant Wages
The driving forces behind this phenomenon are multifaceted, with high housing costs, a cost-of-living crisis exacerbated by the pandemic, and stagnant wages playing a major role. The report points out that "young people living with their parents are more likely to have financial difficulties and be unable to afford unexpected expenses, suggesting that those from less well-off families are less likely to move out."
Aspirations to Move Out Hindered by Financial Realities
Despite the desire for independence, the financial realities paint a different picture. While half of young people living with their parents expressed a wish to move out within a year, only 28% are actively taking steps to do so. This highlights the significant financial barriers they face in achieving their housing aspirations.
Social Exclusion Concerns
Experts warn of potential social exclusion consequences for young adults unable to leave their parental homes. More than half of 25-to-34-year-olds reside with their parents in several southern and eastern European member states. These regions also report the highest rates of young people struggling to save money and making ends meet. Greece and Bulgaria top the list for this "financial strain" phenomenon, with 72% and 42% of young people reporting these struggles, respectively,compared to just 6.3% in Luxembourg and the Netherlands.
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Addressing the Challenge: A Multifaceted Approach
Tackling this issue effectively will require a multifaceted approach that addresses housing affordability, cost-of-living pressures, and wage stagnation. Policies aimed at increasing the supply of affordable housing, supporting renters' rights,and promoting decent work with fair wages are crucial steps in enabling young adults to achieve greater independence and financial security.
Source: Biziday.ro