Fannie Mae says that young adults are finally beginning to flee the nest in their droves, with the number of those millennials who're moving out from their parent's homes growing fast.
The finding comes from a new study by Fannie Mae's Economic and Strategic Research Group, which says the number of adults in their mid to late 20s and early 30s living with mom and dad fell significantly between 2013 and 2015. That period covers the economic recovery following last decade's housing crisis.
The number of young adults aged 24 to 25, and 26 to 27 fell by 7.6 percent in the period. However, those who passed through the same age ranges in 2010 to 2012 saw a decline of 5.4 percent, Fannie Mae's researchers said.
“Stronger income growth and an accelerated rate of marriage are likely two primary reasons why millennials are starting to leave their parents’ homes at a faster pace,” the report notes.
Millennials in their 20s or early 30s saw their income, adjusted for inflation, grow by at least 23 percent between 2013 and 2015 when compared to 2010 and 2012. Further, their incomes are at least 81 percent greater than between 2008 and 2010.
The report further notes that millennials in their late 20s and early 30s were getting married at a much faster rate than similarly aged people did during the recession.
In conclusion, Fannie Mae said the accelerated rate of millennials fleeing the nest bodes well for housing demand. "“Cohort analysis shows that the increased pace of leaving home has been accompanied by accelerated young-adult household formation," Fannie Mae said.