Coming of Age in a Crisis: Young Adults' Patterns of Homeownership and Coresidence Following the 2008 Recession

Abstract

Using the Education Longitudinal Study (ELS), American Community Survey (ACS), and Local Area Unemployment Statistics (LAUS), I interrogate how young adults’ rates of homeownership and coresidence vary by demographic characteristics, and whether their living arrangement outcomes are influenced by how severely their place of residence was affected by the 2008 Great Recession. Findings capture young homebuyers’ tendency to seek affordable housing, as young adults’ likelihood of homeownership slightly increases in housing markets experiencing sharp increases in unemployment during the recession. Large amounts of debt increase college attendees’ probability of rentership, rather than drive them to move back into the parental home. Demographic differences in probability of homeownership and coresidence remain consistent across different residential contexts. Findings reinforce the need for increased access to affordable housing and financial literacy, and the importance of student loan debt forgiveness programs.