Growing portion of adults moving back with family or putting off credit debt to save
San Francisco, CA -- (SBWIRE) -- 03/08/2013 -- Jacob Stewart, a Florida native and graduate of George Mason Law School in 2011 found it rather difficult to find work, and he is not alone in that difficulty of venture.
"I had been looking and looking for jobs," Stewart said. "We moved here because the economy in Utah was better than in other places."
Steward, who recently turned 30, is married with three children, all under the age of five. He had assumed that they would be living in a house by this stage in his life. However, with a $180,000 in student debt and a lower-than-anticipated salary, Steward stated that his family was holding off on any property purchases while he continued to pay off loans.
"The plan is, once we can save up enough for a down payment, we’ll buy," he said. "So far, that hasn’t been possible."
Stewart's experience has reflected the findings of a new study that was released on Thursday by the Pew Research Center. It noted that few adults under the age of 35 are buying homes compared to studies of the past. Few are owning cars or have interest in incurring particularly large credit debt as well for the same reasons as Stewart. More young adults are moving back in with family rather than living independently, given the hardships of logistics of going it alone.
None of the of the information seems to surprise Scott Schaefer, who is a professor of finance at the University of Utah.
"People are willing to take on debt when they think their future income is going to be higher," Schaefer said. "In a recession, there is a lot of job loss and that’s pronounced among the young. The reduced expectations of future earnings are motivating people from taking on debt."
It does seem as if debt is becoming a dirty word for a growing number of young people. The Pew study expressed that "the share of younger households holding debt of any kind fell to 78 percent, the lowest level since the government began collecting such data in 1983."
The conclusion of the Pew study is based upon analysis of data from multiple government sources, including: Survey of Consumer Finances, American Housing Survey, American Community Survey and the Consumer Expenditure Survey.
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