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USC Price School professor Gary Painter argues more young adults living at home could hamper a housing recovery.
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-- I murmured grads are moving back in with mom and -- and our next guest says that is actually hampering our economic recovery joining us now Gary painter.
Professor public policy at the University of Southern California.
You know Gary though they're coming and they don't have jobs they have the highest jobless rate out there of all the -- is what -- -- didn't.
Well maybe they should stay at home but if you're worried about the economy growing in we need to have more people occupying housing units to buy furniture and to buy appliances and those sorts of things to help spur the economy.
Of course the kids might be -- exactly the right thing for themselves right now they don't have jobs.
And.
But you know what they younger just getting out of college is gonna give -- mortgage anyway -- Well thought about getting mortgages about -- going into the rental market first that sort of a first step of establish an independent so it's just a matter of they're right now he we have the economy away is so tough we're we're gonna delay those the students are going to be delaying those college graduates going to be -- -- the housing market.
But again and -- and I'm -- so my children battling with me till I die but these kids don't have sounds to -- into -- -- these brands that you think they should take on.
Well that in this.
The big issue is that with the recession as bad as it's been there's a lot of uncertainty even for the students are graduates that are that have jobs and so they're moving -- I'm certainly not advocating that people without jobs should -- the housing market.
But for those thus does that graduates that do have jobs once the economy search to improve their gonna feel better about the financial situation.
And now -- the normal process.
Design independents they're gonna establish their own households.
Let's look at the other side of the coin Gary what about mom and dad what impact does that have on name -- -- trying to support their son or daughter down in the basement does -- put their economic plans all spending plans on hold as well.
Will likely dozen and some people may be putting less money into their retirement accounts and -- insurers support their children have returned home.
You know this is hopefully just a short term phenomenon as the economy doesn't true than people.
I will continue to make them what sorts of life choices that they normally do you make as they grow up.
You know I think it.
It's not gonna happen any time soon Gary it's -- it's a great thought that these young kids are gonna get out there and boost the economy again but they're not.
We're not seen job creation in that sector any time soon.
So what does that mean and for the overall housing market we're -- in in this slumped for a while -- we.
Well I do expect that if you're looking at the single family house -- sort of -- the housing market than we are going to be in the slot for the next year and a half or two but what -- are gonna see it college graduates unemployment rates.
You know are not nearly as high as the overall unemployment rate and so.
As people have jobs as they feel confident about the permanence of those jobs.
Just through national life progression you're gonna see these students former students graduates actually into the housing market.
And then you know it's surplus in the things that people do when they enter apartments.
And I'm -- I understand that he is suffering right now because there's no cause kids out there but no jobs no no -- -- -- of the last and I think you so much.
-- you're welcome thank you for having me today and.
