Source: Fortune
Summary
A recent study found that high housing costs are driving noncollege-educated men to live with their parents, leading to a decline in labor force participation. The study, conducted by Gabrielle Penrose, a graduate student fellow at the American Institute for Boys and Men, analyzed six decades of U.S. Census data and found that a 10% increase in local rents raises the likelihood of a non-college-educated man moving in with his parents by 1.1 percentage points. The study also found that men living with their parents are 20 percentage points less likely to be in the labor force than those living independently. Experts attribute this trend to the decline of traditional values of marriage and the increasing financial burden of housing costs on young men.
Our Reading
The numbers tell one story. Men are nearly twice as likely as women to be living with their parents, and a new study says it’s particularly harmful for noncollege-educated men. The decline of traditional values of marriage is also a contributing factor, as men are less likely to be married and therefore less likely to tolerate higher housing costs without moving back home. The study’s findings suggest that policies that restrict housing construction inadvertently weaken labor force participation among the men least equipped to absorb the cost.
The strategy enters a familiar phase. High housing costs are driving noncollege-educated men to live with their parents, leading to a decline in labor force participation. This trend is not surprising, given the decline of traditional values of marriage and the increasing financial burden of housing costs on young men. The study’s findings suggest that policymakers should take a closer look at land use regulations and zoning that constrain housing construction.
The announcement sounds familiar. The decline of male labor force participation is a growing concern, and the study’s findings suggest that high housing costs are a major contributor. The study’s author, Gabrielle Penrose, notes that policies that restrict housing construction inadvertently weaken labor force participation among the men least equipped to absorb the cost.
The situation is reframed. High housing costs are not just a matter of affordability, but also about getting people in the position where they’re able to access the labor market.
Author: Evan Null
