Report: Nearly half of all young Americans still live with their parents

A record number of Americans aged 18 to 29 still live with their parents, according to a recent analysis conducted by Morgan Stanley bank.

Approximately 48 percent of young adults under the age of 30 are living in their parent’s home, according to census data analyzed by Pew Research Center analysis, USA Today, the University of Minnesota, and researchers at Morgan Stanley. This is the highest rate since the Great Depression.

The report found that many of the young adults are saving money by not having to pay rent (or paying far less than they would elsewhere) and are instead using their savings on high-end fashion clothing brands, and other expensive items.

“When young adults free up their budget for daily necessities (e.g. rent and grocery), they simply have more disposable income to be allocated to discretionary spending,” the report said, according to Fox Business. “We see it as fundamentally positive for the [luxury] industry.”

“This is of course not the only reason luxury-goods consumers are getting younger in the West (social media playing also an important part) but we see it as fundamentally positive for the industry,” they wrote.

Fox cited previous a survey from PropertyManagement.com which found that over half (51%) of young adults have chosen to move in with their parents with the goal of saving money and 39 percent said it was due to unaffordable rent prices.

The nationwide average monthly rent currently sits at $2,007, according to Rent.com. This is a significant increase since August, when it was at $1,388.