Why Are College Graduates Moving Back Home? Economic and Social Drivers

The share of university graduates living under their parents' roof has risen sharply over the past decade.

Warning Signals from the Labor Market

■As of 2023, 20% of young adults reside with their parents, up from 12% in 2015.

■Youth unemployment stands at %14, with 30% of graduates struggling to secure full‑time positions.

■Average starting salaries have fallen %8, dropping from $45,000 to $41,600.

Ripple Effects on Housing Demand and Rental Markets

■Home‑ownership rates among young people have declined %7; in 2023, %35 of youth now prefer renting.

■Rents in major cities have risen %12, pushing more graduates toward parental homes.

■Eurostat data shows a %3 drop in young home‑ownership since 2020.

Implications for Financial Markets and Investor Sentiment

■Borsa Istanbul's young investor segment fell %15, indicating a more cautious approach to risky assets.

■Savings rates among young adults have climbed to %22, representing a potential €1.2 trillion pool of capital.

■Banks are restructuring %0.75 interest‑rate mortgage products for this demographic.

Markets are sensitive to this demographic shift. Weakness in the labor market and a dip in housing demand can steer short‑term liquidity flows. Over the longer horizon, the savings inclination of younger cohorts may provide a new source of stability for capital markets. Policymakers will need to craft incentives that bolster youth employment and improve housing accessibility. — Defne Aydın, Director of Geopolitical Risk and European Markets