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Stagnate wages, rising home values keeping graduates at home, Zillow reports

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Posted at 1:42 PM, Jun 05, 2018
and last updated 2018-06-05 16:42:09-04

SAN DIEGO (KGTV) - While younger millennials are depicted as urban-living, brunch-enjoying graduates, the majority are not in the mix.

Instead, you're likely to find them at home.

College graduates are earning about 2.4 percent less than their pre-recession counterparts, according to a recent data crunch from real estate website Zillow. In the San Diego area, graduates between 20- and 29-years-old made about $38,000 a year in 2016. About 25 percent of those graduates were still living at home.

Of all 20-something-year-old graduates, about 17.3 percent were working in tech.

RELATED: Data shows how many San Diegans don't owe money on their homes

When graduates hit 30-years-old, though, average wages jump to $70,000 a year and the percent of those living at home drops to 6 percent.

Those in their 20s without a degree in San Diego made about $22,000 a year, with about 43 percent of those living at home. Only about 2.8 percent of those individuals worked in technology.

The trend of graduates living with their parents is nothing new. The thought that getting a job with a decent salary is the key out has always been the assumption.

Which makes Zillow's data showing this still isn't the case for many a bit of a head-scratcher for some, especially when it comes to the tech sector.

RELATED: Teen employment on the rise across the country

It comes down to wage stagnation and climbing home values, Zillow says.

"In 23 of the largest 35 metros, young grads today make less than their pre-recession counterparts did," Zillow says. "And even as wage growth stagnates, rents and homes values nationwide keep going up – to say nothing of mounting student debt.

"This might help explain why more than a quarter (28.2 percent) of U.S. twenty-somethings with college degrees live with a parent, up 8.8 percentage points in a little more than a decade," the site added.