(NBC) Home sales are off to a sluggish start this year and predicted to be even more sluggish in the months to come.
Analysts say young people are partly to blame for it.
“Because young people are still living in their parents’ homes since the recession and they haven’t really started to move out of their parents homes,” said Jed Kolko, Chief Economist at Trulia.
Backing up what Kolko says is recent data from the National Association of Realtors.
It shows the percentage of U.S. adults under age 35 living at home is at its highest level since 1981.
Even when these millenials do move out, they’re not buying.
“Young people who are moving out of parents’ basements are going to look first to rent, before they think about buying,” said Kolko.
He says that helps explain the dramatic uptick in apartment construction in recent years, but he hopes it’s just a temporary trend.
“It still looks about 35% cheaper to buy than to rent on average for someone who’s staying put for seven years, and itemizing their deductions,” Kolko said.
But more millenials are starting to find work, and more likely to live on their own, which is a reason for realtors to feel optimistic.