The tide of millennials moving in with their parents has peaked

It’s the end of an era: The share of America young adults living with their parents appears to have topped out.

Last year, 36 percent of 18-31 year-olds were living at home. But the growth trend has ceased to continue into 2014, according to a new Federal Reserve study — though the rate remains stuck at the 36 percent level, and well above historical averages.

Not surprisingly, bearing student debt loads was most strongly correlated with becoming shackled to the bedroom you slept in in high school. In the months just before moving home, loan delinquency rates surged to 14 percent from 9 percent on average, while mean credit scores fell to 626 from 632. After the move, both delinquency rates and credit scores stabilized, and one year later, delinquency rates begin to fall and credit scores begin to rise.

They compared that group to a set of young adults who moved, but not back to their folks’ place.

The researchers also found that more severe delinquencies resulted in longer home stays. Falling behind by 90 days or more on your student loan was associated with a 7.5 percent increase in the duration of crashing at home.

Finally, they found that having any auto loan or credit card debt at all actually decreased how long you stayed at home, compared with people who held neither of these kinds of loans.

This suggests that, “those who do not use these types of credit are fundamentally different than borrowers, and may face credit constraints or an unwillingness to borrow and therefore rely on longer spells of parental co-residence.”

You can read the full study here »

Rob covers business, economics and the environment for Fusion. He previously worked at Business Insider. He grew up in Chicago.