Post-College Roomies

In an article published on today's CNNMoney.com, it states that 85% of college graduates are moving home after they get their diploma. So parents are becoming the ol' reliable roomie. The ones you know will always clean up after themselves and be courteous (maybe a little too much so). Unlike the typical roommate they might even slip you a $20.

Fun, right?

The article claims the rate has grown from 67% in 2006, and the unemployment rate for 20-24 year olds is currently a whopping 15%. Of course, a lot of factors go into these rates each year, but as a college graduate in 2007, options seemed endless and moving home wasn't one of them. Instead, going on for a second degree and prolonging the "real world" at the time seemed like the best option. Besides, who turns down 2 years in Austin, Texas? That's what I thought...until I was forced to compete with job seekers 10 years my senior for the same low paying positions.

So while initially it wouldn't have been very understandable to graduate and just move back home - it became a reality for more people than ever. This forcible shift in what happens after you graduate will change a lot of thing - and if you don't think it will change how marketing to this group of young adults, you are wrong. Everything changes that - even the new roommate situation.

The effects of this situation is unknown now, but in a few years once this group lands jobs and gets back on their feet undoubtedly the way that they think about buying will have changed. Their mindset about products will change and their brand loyalties will change from the 20 somethings that we have known in the past who did not have to rely on their parents for income and a roof over their heads post-grad. I, for one, know how much loan money can buy you - it can be lavish and fun, but once those automatic payments stop coming in and you realize you somehow have to pay all those good times BACK (and then some)...it's a blow all around. Research is already showing that these consumers are much more money conscience than their predecessors. They are cutting back on a lot - way back. According to a Mintel report conducted in August, Generation Frugal, I mean Y, is spending more time watching movies at home (43%), watching TV (32%), reading (36%), cooking dinner (37%) and playing on the internet (46%) rather than going to the movies (15%), theater (13%) or a live event (13%). Why? Because they don't have the money - and that is now more evident than ever.

As marketers, the challenge is to take these hard facts into consideration and decide what the impact will be on this generation's mindset as they progress into their careers. Learning the value of money without multiple job opportunities and salary negotiations will change their habits (and expectations) forever. Connecting with them will require sensitivity to the value they place on products and what they define as a "good deal."

Rooming with Mom and Dad for awhile won't just be a temporary fix - it will be a permanent shift in how Gen Y consumers...possibly forever.