A recent Morgan Stanley (MS) report said that the rise in young adults living at home is partially responsible for growth in luxury goods sales.
Radio personality Dave Ramsey weighed in with some thoughts about the trend.
DON'T MISS: Bank of America Thinks Social Media Subscriptions Could Rake in $1.7 Billion
"Let me get this straight. You're living in your mama's basement, but you've got a Coach purse," he said. "This is not parenting. This is coddling."
The Morgan Stanley analysts, led by Edouard Aubin, said the trend is fundamentally positive for the luxury industry.
"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.
U.S. Census Bureau data shows that in 2021, more than half of adults aged 18 to 24 lived in their parental home.
"What this is creating, for the particular young people that are falling prey for it, is what's known as a trainwreck," Ramsey said.
Adults Living at Home Trend Increasing
The trend of more adults living with their parents has been increasing during the past several decades. The covid pandemic emphasized the tendency.
The fact that young adults are delaying getting married also contributes to the trend.
"Here's what's going to happen," Ramsey said. "You cannot avoid life. It's coming for your butt. Mama can't protect you."
"Your opinion doesn't matter until you've got actual experience to base that opinion on," he continued. "They're going to run into reality. Reality says you are not an expert on something just because you breathe air. You're opinion is not valid unless it is based on some kind of facts, not feelings."
"If you're a young person listening to us, we are not picking on you. We are begging you to get away from your parents."
